Having posted twice recently about car insurance fraud, I didn’t want to ignore the all-too prevalent reality of house insurance and contents insurance fraud.
It has been suspected by many, that home insurance fraud would increase with the global financial crisis. And it would seem that suspicion has become a reality.
In a statement released by
Western Australian insurer RAC, it was noted by Technical Claims Manager Glen Walker that “This is the highest level of fraud referrals we’ve experienced. It’s a concerning trend that people seem to think insurance fraud is an option for quick cash when times are tough.
“When people lose their jobs or fall on tough times they often see making a fraudulent insurance claim as a quick fix to a financial problem.”
The situation for home insurance and contents insurance fraud seems to be similar in the UK.
The Association of British Insurers has recently published data indicating a 35% rise in contents insurance claims such as TV’s, computers and watches. The ABI has indicated it believes many of these home insurance and contents insurance claims to be fraudulent.
To report an instance of contents insurance (or other insurance) fraud, you can make an anonymous report on the
insurance fraud hotline. The number is 1300 600 444 (open 24/7).