Why would we even answer these questions in the first place? Learn more below, after the Video Guide to California Renters Insurance.
Is Apartment Insurance Fraud Easy?
No, for a variety of reasons. The first reason is that the vast majority of people are, in fact, generally honest people. That makes it difficult for them to keep up a lie and to continue pretending that something actually happened to cause a loss.
The fact that people are generally honest means that most people don’t have the connections or the practice to pull it off, either, much less the foresight. Who saw you fill that gas can? Was it caught on camera? Why were you filling a gas can when you don’t even own a lawnmower? Why did you take the gas can into your apartment? No reasonable person would do that.
Who do you know that you can trust to hide the property that was “stolen” from you? Do you know someone who can convincingly fake all the signs of a break in without making it look fake or trying “too hard?” Did you know that it’s a bad idea to move things out of your apartment before a fire happens because it looks downright suspicious, as if you knew that fire was going to happen?
Honest people have a very difficult time committing apartment insurance fraud.
So do dishonest people. There are just too many questions to answer when things start to look suspicious, and too many holes in your story that you’ll have to fill in on the fly and then remember so you can keep the story straight. Can you lie believably under oath? Because the examination under oath is a tool that companies use when they suspect apartment insurance fraud.
Remember that you’ve been around the block a time or two, but insurance fraud is an attempt to go up against someone who’s been around the block many, many times. The company has a ton of combined experience in rooting out apartment insurance fraud. You don’t know all the things you’re up against.
Trying to make a fraudulent claim on your Riverside Renters Insurance is just asking for trouble, because it will be found out.
What Is Apartment Insurance Fraud On The Application?
Apartment insurance fraud on the application is when you lie about or conceal a material fact that would influence the price or the decision of the company to offer the insurance in question. That could be lying about previous claims, for instance. It could also be saying that you don’t have kids when you do, as they’re a potential liability exposure.
It’s also common to lie about the animals you have in your home. Even if you’re certain your dog will never be a danger, even if it’s a tiny dog that never goes outside, you need to disclose it if asked. If you fail to disclose the dog, you could be putting the policy and your coverage in jeopardy even if the claim has nothing to do with the dog!
Status of the home is important, as well. If it’s an apartment that you’re only in one week a month because you spend most of your time working in another city, that’s something the insurance company needs to know about.
What's Your Insurance Language?
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- Just Want To Watch A Movie Together? See our Video California Renters Insurance Guide!
Why Do People Commit Apartment Insurance Fraud?
In a nutshell, to get money they’re not entitled to.
It’s easier for them to stomach stealing from an insurance company as opposed to stealing from an individual, and that makes sense, but where does the insurance company’s money come from? Other people. What happens when fraudulent claims are paid? Insurance costs more for everyone. Stealing from an insurance company by committing apartment insurance fraud is very much the same as stealing from other people
Application fraud is generally committed by people who have either filed previous claims and don’t want to pay the increased costs that come with it or by people who know that the risk they’re asking the company to insure is not acceptable. Sure, insurance will cost more if you’ve had claims in the past – legitimate or otherwise – but it’s still cheap. A few more dollars a month is a small price to pay considering the amount of coverage that you have for a future loss.
Concealing previous losses is a good way to get your coverage cancelled, incidentally.
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.It’s just not worth trying to save a few bucks by failing to mention material facts, especially when you’re directly asked about those facts.
Is Apartment Insurance Fraud A Good Idea?
For what it’s worth, replacement cost coverage doesn’t quite work like you think it does. Someone who wants to commit apartment insurance fraud might lie and say that their TV and their game system were stolen. They’d be expecting a check for the total cost to replace both items, but that’s not what happens. You generally get a check for the actual cash value, and then you prove that you replaced the property by purchasing new stuff, and then they pay for the difference to get you to replacement cost.
Not to mention that if that TV and game system are later “found” they are legally the property of the insurance company, not your property.
It’s just not worth the hassle of a fraudulent claim.
However, if you need renters insurance to cover legitimate losses that might happen in the future, it’s easy to get covered in as little as sixty seconds. Just call (800)892-4308 or click to get covered - whether you need Riverside renters insurance quotes online or coverage anywhere else!
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.Photo Credit: Chantal Pare Pinterest's Fraud Triangle CC BY ND 2.0