Insurance fraud is a real issue when it comes to home insurance in Chandler, AZ. Fraudulent home insurance claims can be phony claims and fake property damage, to name a few. If you are considering exaggerating your insurance claim, don’t. If you know someone who you suspect committed insurance fraud, then you should report them because it affects you as well.
Fraud Drives Up Premiums
Fraudulent insurance claims are often paid by insurance companies. If you couple that with the fact that insurance claims are increasing, then it’s easy to see how fraudulent claims can increase the rate you pay for your home insurance each month. As a whole, everyone with insurance covers insurance companies’ costs. With more claims, the cost of covering your home can increase over time.
Fraudulent Insurance Claims Affect Risk Factors
Insurance companies consider a lot of risk factors when you apply for home insurance in Chandler, AZ. All those factors boil down to estimating the odds of paying out a claim. If there is a steep uptick in the number of claims in an area, then it could affect the rate you pay for insurance. You see, if there is an increased chance of paying out a claim, then the cost of protecting your property increases too.
The Cost of Fraud
The NCIB estimates that the cost of fraud can cost people between $200 and $300 each year. If you consider the fact that the additional cost of home insurance is completely avoidable, then it makes sense to report instances where you suspect someone is filing a false claim.
No matter what company you have for home insurance, you have a duty to report home insurance fraud. If you suspect someone in your area is guilty, then you can contact us or our Arizona Department of Insurance to inquire about the steps you should take to report their behavior.