One of the major factors in increasing homeowners’ insurance rates is the issue of property and casualty fraud. Even if you’ve never made a home insurance claim, fraud could affect what you pay for insurance. Industry experts estimate that property insurance fraud adds up to over $30 billion annually. Those losses cost policyholders dearly in increased premiums. In some states, like Florida, the issue is very problematic. Many companies are no longer writing homeowners’ insurance policies in the state. Others have simply canceled policies or mandated property owners make improvements to their homes, like new roofs, to maintain coverage.
Beyond increasing rates, this can lead to a domino effect of issues, especially when mortgage companies require home insurance.
When one thinks of property insurance fraud, it may conjure up images of everything from arson to over-estimating losses. It all negatively affects insurance companies and eventually trickles down to policyholders.
Home insurance is designed to help protect owners from unexpected losses to property and from liability claims. It is not intended to replace systems in your home that have a lifespan, like wiring and roofs.
There’s an old expression that says it’s all fun and games until somebody gets hurt. In some cases, roofing companies have been offering “free roofs” based on questionable or minimal damage to a roof. This may sound good, but people are getting hurt. They are getting hurt by higher home insurance premiums and, in some cases, by companies that are being forced to drop policyholders.
It can be comforting to know that, with an independent insurance agent, you may have more choices and more options.
If you have concerns or questions about your home insurance policy, we encourage you to reach out to us. As independent agents, we are qualified to review the policies of any company and may be able to help you find alternatives. Remember, property insurance is a crime with real consequences. If you have any home insurance questions, feel free to contact us.