Home insurance covers damage to homes from natural disasters and other causes, and may include liability coverage. Home insurance fraud occurs when a false statement is made to receive policy benefits. Penalties for home insurance fraud vary but may include fines, probation, community service, and even jail time.
Home insurance, also commonly called “homeowner’s insurance,” is a type of insurance that covers damage to homes from a variety of sources, both natural and resulting from the acts of other people. Home insurance typically also includes liability coverage for personal injuries that occur in the home due to owner negligence. Home insurance fraud is committed whenever the claimant, through his or her deeds or statements, makes a false statement to the insurance company with the intent to fraudulently receive policy benefits.
Home insurance is insurance that includes protection for the owner against many different causes of damage to your home and the contents within. Typically, home insurance protects against damage from any type of storm or fire. Depending on the home’s location, it can provide for damage from the weight of accumulated ice or snow, and even cover damage from the eruption of a volcano. Some home insurance policies may cover damage caused by riots or a break-in by a burglar.
Home insurance policies may also include owner liability insurance. This protects the owner in the event that his own negligence in maintaining the property causes damage to a third party invited as a guest on the premises. Your home insurance policy will cover all legal costs, including damages for medical bills, pain and suffering, and loss of wages.
Home insurance fraud occurs when a home insurance policy holder fraudulently attempts to recover their policy through a false statement or other fraudulent act. The classic example of home insurance fraud is where the claimant has a legitimate claim under his or her home insurance policy, but misrepresents how much property is actually damaged or stolen, sometimes even adding non-existent items to the request. Additionally, you may be liable for home insurance fraud if your home or property is intentionally damaged with the intent to make a fraudulent claim under the policy.
Home insurance fraud is treated very seriously, although the penalties vary from jurisdiction to jurisdiction. Typically, penalties include fines, probation, or community service. Anyone caught committing home insurance fraud will generally also have to pay the defrauded insurance company any money they fraudulently received with interest pinned. Facts will always dictate the penalty, and particularly egregious cases will usually result in jail time.
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