It seems like a sneaky but harmless way of saving some cash, but insurance fraud has more serious consequences than ever.
Insurer RSA launched a fraud survey to investigate how likely Brits are to lie when making an insurance claim. It found that 1.2 million Brits don't view insurance fraud as a serious offence and 40 per cent who think it's wrong to lie when making a claim still class the action as ‘a little fib’.
Home insurance is a particular target for fraud claims. Many of those making a claim fail to inform their insurer of acts of negligence, such as leaving a door or window open which then lead to a break-in, or leaving a pan unattended which then caused a house fire. It's also commonplace for those with home insurance to provide inaccurate details about their contents in the hopes of claiming more than they originally owned.
However, these actions can have important repercussions. According to the survey, 74 per cent of those surveyed realised that making a fraudulent claim could lead to their policy being voided. Nearly two thirds (59 per cent) also realised that they may have to make back claim payments and that their future insurance premiums were likely to rise as a result.
Yet one consequence that was generally overlooked is that insurance fraud will also leave a black mark on your credit file - making it more difficult to secure good rates on credit cards and mortgages.
If you're tempted to cut corners with a home insurance claim, the message is to think twice. Some home insurers may be sympathetic to honest mistakes but they will clampdown hard on purposeful lies.
If you're not happy with your home insurance provider compare home insurance online and see if you can find a better service elsewhere.