Let's Defraud Your Insurance Carrier - Interested?

Based on published financial reports from the top three homeowners' insurance carriers, they have a combined net worth in the hundreds of billions of dollars.  How does this compare to your net worth?


With all that money, surely they would not miss a few thousand dollars you could pocket by filing a potentially invalid claim for property damage. 


Here's how to do it.


First, create damage to your property - a cracked water pipe could flood your home and get you $10,000 or more, or possibly something easier - damage your roof so that it appears to have been caused by high winds or hail.   Then you could get a new roof, and make a few dollars for that trip to Disney!


This is how I have seen it done - get a written replacement quote from a real roofing company, a quote that is fair and in keeping with local market costs, and give this quote to your insurance adjuster as being from the roofing company you have under contract to replace your roof. 


Then when the insurance check arrives, walk away from your contract with the "real roofer" and hire the first nitwit that gives you a low-ball price to replace your roof.   Cha-Ching! 


You have certainly smacked the insurance company and the "real roofer" so that you could pocket a few hundred or several thousand dollars!    Again, insurance carriers have BILLIONS, so what's the big deal?


My advice - please do not spend the ill-gotten gains just yet.   You might need the money to hire a lawyer to represent you against the felony charge of INSURANCE FRAUD.

This is an excerpt from the definition of insurance fraud provided by the Alabama Department of Insurance.   To review the complete information in detail, please click HERE to move to their website.


Q: What is insurance fraud?

A: Insurance fraud occurs when individuals deceive an insurance company, agent or other person to try to obtain money to which they are not entitled. It happens when someone puts false information on an insurance application and when false or misleading information is given or important information is omitted in an insurance transaction or claim. 

Also, anyone who seeks to benefit from insurance through making inflated or false claims of loss or injury. 

All things considered, please just play it straight if you do file an insurance claim.  After all, you have the insurance coverage for a reason - to cover the costs of repairs and/or replacement of damaged property, so if you have a valid claim, make the call.

Make sure the claim is valid, that you did nothing even remotely illegal to cause the damage, and that you did not plan or intend to profit from the claim.