Is this insurance fraud??????

Question

So a river runs through your back yard and its 150 feet away from your house. The flood waters start rising at 7:56 am. At 9 am you notice the water is rising fast. At 10:28 am you call to get flood insurance and you get it. By that time the flood water is at your back door is this insurance fraud or anything like that.

Answer 1

Not going to work.

Flood insurance has a 30 day waiting period -- just to prevent this kind of thing.  That means you apply for the policy and it does not take affect for 30 days.

Flood insurance is handled by the federal government - through the NFIP  (National Flood Insurance Plan) - here is more info on their web site.

http://www.floodsmart.gov/floodsmart/pag...

Answer 2

No it's not insurance fraud.  Your big problem is the grace period.  I'm almost certain most if not all flood policies have a 30 grace period before they go into effect.  The purpose for that is this exact scenario.  Might want to read your policy.  Your claim would be fraud if you turned on your garden hose and flooded your house and said it was from the river.

Answer 3

Alot of it would depend on your agency and what power to write a policy it has.  Rest assured though the underwriting department probably would not renew your policy. And as previous claims adjuster, knowing what you have told me a definite risk report would be written.  I would say this was borderline fraud to say the least.

Answer 4

No coverage, because there is a waiting period of 30 days (not a grace period), before the policy is active.

The claim, if you report it, will be denied.

That would be like buying a homeowners policy when a wildfire is nearing your home. By the time the agent writes the policy, the fire is within a couple of feet from your house.

It ain't gonna happen.

Answer 5

Flood Insurance has, I believe, a 30 day waiting period. No coverage for the first 30 days.

Answer 6

Nope, because flood insurance doesn't go into effect until 30 days after you've paid for it.  

So there's no coverage for the loss.

Answer 7

First of all, flood insurance takes 30 days to become effective from the time you actually provided a check.  So you don't have much to stand on.  Its not insurance fraud because nothing is going to take place.  Its called bad luck.