How do homeowner's insurance companies know if people lie on claims?

Question

If a person filed a claim for theft, burglary, or anything of the sort, how do the insurance companies know if they're lying or not? Even if people provide receipts or pictures, do they go through a process to make sure that the item was purchased by that person? You also have the right to black out any personal information, that way your credit card information will be secure. So what do insurance companies have to work with? If someone's crafty enough, they can forge receipts, take fake pictures, or find some way to obtain owner's manuals to provide fake proof.

Answer 1

A person who files a claim also has to file a police report.  You can get into a lot of trouble for filing a false police report.  Most insurance claims involve sending forms out of state ( that makes it a federal offense ).

A lot of people do file fraudulent claims.  Some of them do get away with it.  The insurance companies have internal auditors that track claims and catch a lot of the false claims.

The jails do have people in them who thought it was easy.

If Dirty Harry was an insurance investigator, he'd probably say....." well Punk - do you feel lucky ? "   - - lol...lol.

BOTTOM LINE - - IT IS A ROLL OF THE DICE

Answer 2

So what are you really looking for the formula to make a fraud claim?

Answer 3

if you file a claim for theft or burglary the ins. co. is going to want to see the police report that will show what was taken. if

you can't or don't provide one the ins co is going to want to know why. and probally won't pay you

Answer 4

There are red flags that tell us something is wrong.

But I'm not going to tell you what they are.

Sorry, no lessons from me on how to commit insurance fraud.

Also - you do have to file a police report -- if its a fake claim....along with insurance fraud you can get charged with filing a false police report. That in itself is a felony. Insurance fraud is also a felony. And states are becoming more aggressive about prosecuting it.

Insurance fraud is not a victim less crime. Every time someone commits it -- they might as well take your wallet out of your purse - open it and steal your money. It's the same thing.  Insurance companies are business. So, just like the grocery store that raises prices because of theft.....insurance companies raise prices to cover theft.  You, your friends, your family all pay higher premium because of crooks.

Answer 5

I would say, a majority of people lie on claims.  They exaggerate a real claim, or sometimes even stage a claim.  Adjusters know this, and know that the majority of the people they are dealing with, are lying to them, and trying to scam them.  That's why adjusting is so hard, and has such high burnout, and makes such cynics of people.  And why I would never do that job.

Anyway, there's no requirement that a person PURCHASED the item.  All that counts, is that they OWN it.  That can be proved, obviously, with receipts, or photos.  Then, there's the "flavor" of the claim.  It's highly unlikely that Joe Smith, working minimum wage at McDonalds and living in a $200 a month rented room, has 5 50" plasma televisions.  

Adjusters can also run reports of people, to see if they have a history of that type of claim.  

Yep, I'd say probably over 50% of theft claims are exaggerated, at least.  But remember - once you have a theft claim or two, you become uninsurable for the next five years.  HOMEOWNERS will pay many, many times that claim payout, for forced placement coverage.  

Also, this isn't official insurance stuff .  . but I've noticed in the world, what comes around, goes around.  People who get royally screwed by "the system" or "life", or what not, usually are the ones who a few years ago, were doing the s******g.  Whether you believe in Karma, or a Vengeful God, or whatever, you do sow what you reap.