Fraudulent Mistakes

By Author: Chris Kouton
Total Articles: 10
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According to the body which looks after the insurance industry (the ABI) fraudulent insurance claims are on the rise. The general consensus is that this may be as people offer inaccurate information on their insurance applications in order to get cheaper policies.

Whilst this might seem like a leap, other research supports the idea of people deliberately under-insuring themselves. According to recent statistics the average British home is under-insured on the value of its contents by as much as £8,000.

This could, of course, be accidental and due to people not keeping abreast with changes in the value of their possessions. Fluctuations in the price of gold and other precious metals has meant jewelry is now more expensive than ever, and inflation (until recently) could also have played a part.

Still, that someone could accidentally under-insure themselves by £8,000 seems implausible in the extreme. It's more likely that some people are massively under-insuring their homes in order to get cheaper insurance policies.

Obviously enough, though, this is a false economy. Whilst you might save money ...
... on your monthly premiums, if you ever have to make a claim it's likely that the insurance company will declare your policy invalid. So the money that you've been paying in will have been wasted all the same, even if the policy does pay out you may find a gulf between the amount of money that you receive and the amount of damage that you have sustained.

Another curiosity is a report that suggests that a large proportion of people are double-insuring themselves. Many expensive items come with their own insurance that is an extra and unnecessary cost as the item is covered by the insurance policy that the homeowner already has.

The best insurance policy is the one that is most closely tailored to your specific circumstances. The more accurate you are the better value deal you will get and there is little point paying for a policy that doesn't protect you properly, if at all.

Home insurance does not have to be expensive, however, and it is possible to find some very good deals at the moment without accidentally or intentionally committing fraud. One company that is offering particularly good deals at the moment is Co-operative Insurance and might provide a good place to start your search for a policy.

The Co-Operative Insurance. Let us help your home insurance needs.