Home Insurance Daily Digest

Fraud is the deliberate deception that results in unfair or unlawful gain according to Webster’s dictionary. However, there are instances wherein one person’s definition does not actually match that of another. For insurance companies however, they have a clear and exact understanding of what constitutes home insurance fraud.

The following is a list of common frauds that are seen from the perspective of an insurance provider:
• Inflating the real amount of claim
• Staging a break-in or theft
• Commits arson
• Files a false claim
• Fakes an accident
• Asks contractor to include amount of deductible
• Re-files a claim previously paid by the insurance provider
• Receiving undeserved compensation

There are some measures that can indeed make the difference between high and low premiums for homes. Having the best amount of security in terms of high-grade locks, security systems (alarms) and other measures such as security grilles to thwart burglars can be one. Installation of timed lights indoors and security lighting outdoors can also lower your risk along with responsible behavior such as not leaving the keys under the potted plant on the patio. You should also try to join neighborhood watches to make not only your house but the whole neighborhood safer for all. Smoke alarms at the required areas and even at recommended ones are nice (ask the local fire brigade where they would work best in protecting your home due tot he varied and different designs of each and every home). You could also ask the insurance to raise your participation so you shell out more money before you get them involved. And lastly, be sure to claim only when you need to avoiding trivial matters, for the more likely you are to claim again and again may show the provider you are not taking enough measures to manage your property. With these tips in mind, there should be some savings in terms of premiums and managing your risks is the best way of doing so.

These should be made apparent to the insurance provider upon application for cover which they do take seriously. The higher the incidence of crime the higher the premiums you have to pay for due to the higher risks involved for the provider. Another sure fire sign of high home insurance costs would be areas near bodies of water that have had incidents of floods and other disasters that have many claims filed for by previous homeowners. So add location to your choosing a house to buy or rent list so you get the best value for your money in this economically challenged times.

Image Source: www.mtgfoundation.com

In the United States, most home buyers have a loan of money in the form of a mortgage loan, and the mortgage lender at all times requires that the buyer acquire homeowners insurance as a condition of the loan, in order to protect the bank if the home were to be shattered. Anyone with an insurable interest in the property should be listed on the policy. In some cases the mortgagee will relinquish the need for the mortgagor to carry homeowner’s insurance if the value of the land exceeds the amount of the mortgage balance. In a case like this even the total destruction of any buildings would not affect the ability of the lender to be able to exclude and recover the full amount of the loan. The insurance dilema in Florida has meant that some waterfront property owners in that state have had to make that decision due to the high cost of premiums.

In the UK, the only difference between you and getting cheap home insurance maybe your post code or zip code as it is known to the rest of the world, Why, well in the UK at least online insurance quotes are based on postcode and for the whole country three areas stand out as one of the most expensive areas to get insurance for. This may be brought out by problems associated with crime, location and the amount of claims providers do get from that particular areas. High crime areas especially burglaries and similar crimes do account for the said high premiums but they can be lowered with the homeowner taking the necessary measures such as adequate security and by installing an alarm system. These should be made apparent to the insurance provider upon application for cover which they do take seriously. The higher the incidence of crime the higher the premiums you have to pay for due to the higher risks involved for the provider. Another sure fire sign of high home insurance costs would be areas near bodies of water that have had incidents of floods and other disasters that have many claims filed for by previous homeowners. So add location to your choosing a house to buy or rent list so you get the best value for your money in this economically challenged times.