In case you are in the market for a new insurance policy, be sure to do your research. Home Insurance companies know that consumers can quickly feel overwhelmed when looking for coverage. They also know that many people will jump at the first offer they get without doing any comparison shopping or asking about discounts and other features. This is why it is essential to understand what type of policies are available to decide best for your needs. 

Doing some simple homework before signing with any company will help save money, time, and headaches down the road. Learn more about home insurance scams by reading this blog post!

What is Home Insurance Scams?

Homeowners insurance provides coverage in the event of a robbery; if your home or its contents sustain damage due to fire, flood, man-made disasters such as natural disasters can happen at any time. Homeowners may also receive compensation for injuries they suffered on their property, like dog bites.

Home insurance fraud is a serious issue, and it can affect both policyholders, those who seek damages over their covered losses or compensation for personal injuries caused by others. Homeowners may also commit this crime if they submit false claims to an insurer when filing against another person’s property without permission from law-enforcement agencies beforehand, which could lead them to criminal charges as well civil actions taken up on behalf of the company themselves.

Home Insurance FRAUD cases are often investigated heavily due to how expensive these types of incidents cost everyone involved and because so much time has passed since any potential damage was done. Yet, the homeowner is still making the same accusations against their insurance company.

Some of the most common types of homeowners’ insurance fraud are as follows:

• Overstating the worth of stolen goods in a house or car burglary
• Purposely causing damage to make a claim.
• Asking the repairman to “cover the deductible” by raising estimate or cost
• Hiding the fact that a home is rented out or utilized for a commercial business purpose
• Faking the magnitude, source, date, or location of the damage
• Falsely simulating an actual burglary or car break-in and fabricating the theft or destruction of property.
• Fake repair invoices or receipts, frequently in conjunction with a dishonest contractor, plumber, repairman, or insurance adjuster

How to Protect Yourself Against Home Insurance Policy Scams

People who wish to file insurance claims with their home insurance policies will need to be aware of potential scams in order to protect themselves. A number of recent reports point out the prevalence of scam artists in various parts of the country. Some cases involve criminals posing as licensed insurance agents or roofing contractors in an attempt to elicit payment for unnecessary work. Others pose as an officer from an underwriting company and try to get homeowners to sign additional paperwork that increases the risk level on their existing policy or adds expensive new riders.

Getting Started

Homeowners should ensure they understand exactly what they need from their current policy before trying to make any changes. For example, some individuals think that adding a rider for ruined clothing will cover them in the event of a fire or other damage caused by a natural disaster. However, these riders are often already included in the standard policy and come at no extra cost.

Speak with a Home Insurance Agent

Homeowners should also consider speaking to independent agents affiliated with direct home insurance carriers before signing up for a policy directly through the company.

Agents have access to several different carriers at once, which can result in savings on premium costs. They have access to several companies at once and can shop around to find the best rates. 

While a homeowner can get a lower premium by going directly through a company, this route does not offer much in terms of customer service or personalized advice if something goes wrong with the policy. And even though someone can get a price quote through their current insurance company, communicating with underwriters can be difficult, and agents will generally provide better service throughout the claims process.

Do Some Research

Homeowners should also do their homework on exactly what they need when it comes to insurance coverage. For example, some agents try to sell additional riders that provide comp and payment for ruined clothing in case of a fire. However, homeowners may not realize they already have such protection in their standard policy and pay extra without any real benefit.

Getting Assistance at Home

Homeowners who need assistance when dealing with their insurer will often contact one of these independent agents who has access to all major home insurance providers. These professionals can talk to several companies at once and match prices while providing personal attention throughout the claims process. They are also available any time of the day to handle issues that arise during a claim settlement or with pre-existing policies. The agent can also provide advice on how to get in touch with their company’s underwriting department, which is sometimes required if there are questions about adding new riders to an existing policy.

Trying Something New

Homeowners may wish to consider getting quotes from several different carriers at once when shopping around for insurance coverage. Several agencies offer lower rates than traditional companies while providing the same customer service and personalized attention throughout the claims process. Insurance providers have understood this trend towards more transparency among home insurance carriers and are offering these benefits in order to stay competitive.

On top of reducing expenses, independent agents can also help a homeowner find the right coverage for their needs. Some homeowners have policies with insurance companies that do not specialize in home insurance and end up purchasing additional riders at a higher price level than necessary. In order to avoid this problem, it is vital to work with agents who know which carriers provide the best rates as well as the most comprehensive coverage for an individual’s specific requirements.

Do Not Share Your Personal Information

Anyone who receives a call from someone claiming to represent their insurance company should be aware that it is highly unlikely to be legitimate since insurers will never contact policyholders over the phone for their account information. There are several things that homeowners can do to protect themselves against insurance scams, including not sharing personal or financial information unless you know who you are communicating with and never signing any additional paperwork unless your agent approves it.

Criminals will frequently request the homeowner’s policy number and contact information to “verify” some piece of information. Do not share this information and report any such requests to NICB (National Insurance Crime Bureau). If you have a claim you want to file, do so directly through your insurance company.

Report Suspicious Behavior

If you suspect that an individual claiming to be from your insurance company or some other business is a criminal masquerading as an agent, report this information immediately to the NICB. Additionally, you should always check with your current insurer before signing any new paperwork for additional riders on your policy, even if it looks like legitimate paperwork. If anything about the transaction seems suspicious or too good to be true, do not sign and contact your insurance provider directly.

Home Insurance Agency in Newton, New Jersey

With so many insurance scams out there, it can be tough to know whom you should trust. That’s why we want to help you avoid these harmful schemes and keep your home safe with a quality policy from the Home Insurance Agency in Newton, New Jersey, one of the best-rated companies in the industry. We offer affordable policies backed by our trusted reputation for outstanding customer service and excellent coverage options. Contact us today to learn more about how we can protect your property or answer any questions about protecting yourself against fraudsters!