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Home insurance fraud attractive to credit-crunched Brits

06 October 2009 / by Rachael Stiles

Five per cent of British householders have admitted that they would consider committing home insurance fraud, research from moneysupermarket.com has found.

More than 1.2 million of those who said they would consider defrauding their home insurance provider by making a false claim blamed their potential for dishonesty on the recession.

The credit crunch has squeezed household finances, causing many people to cancel some of their insurance policies, but moneysupermarket.com has unveiled the lengths to which some credit-crunched Brits will go to.

Furthermore, many respondents to the survey admitted that they have already made a successful fraudulent claim on their home insurance policy in the past.

Julie Owens, head of home insurance at moneysupermarket.com, said: "Our survey shows that many consumers believe it is acceptable to make a false or exaggerated claim on their home insurance."

But, she warns, "No matter how tempting, fabricating a claim for a pay out is not only wholly inadvisable but it is also illegal, and you could face being prosecuted as a result. The recession has certainly affected us all but faking a home insurance claim isn't the way to make ends meet."

Ms Owens wonders if the fraudsters, and potential fraudsters see home insurance fraud as a victimless crime, assuming that it only impacts the insurance company, but she stresses that this "couldn't be further from the truth" because insurance fraud pushes up the cost of cover for honest customers.

According to the Association of British Insurers, insurance fraud of this nature adds an additional £44 to a household's insurance premiums each year.

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