Home insurance fraud more attractive during recession Go compare with our comparison table

Home insurance fraud more attractive during recession

14 April 2010 / by Rachael Stiles

More Brits would be willing to commit home insurance fraud during a recession, and 402,000 have successfully faked a claim already, moneysupermarket.com has discovered.

Research from the comparison website has found that 2.4 million Brits – six per cent – would consider making a false home insurance claim, compared to five per cent in August last year. Therefore, around 500,000 more people are thinking about committing fraud than they were a year ago.

The study found, however, that the recession has had little affect on about one million of those who said they would consider it, who said they would do it anyway.

Julie Owens, head of home insurance at moneysupermarket.com, said: "How worrying to see so many consumers believe it is acceptable to make a false or exaggerated claim on their home insurance."

She said that consumers should avoid the temptation, not only because it is inadvisable, but because it is insurance fraud and is therefore illegal and perpetrators could be prosecuted.

Ms Ownes said that 'faking it' is not an acceptable way for credit crunched Brits to manage their stretched finances. It does not just affect the home insurance provider, but also other consumers, as the rising cost of insurance claims in the UK is pushing up premiums for everyone else.

While some have turned to insurance fraud to make ends meet, others have cancelled their home insurance policy altogether.

"Brits needs to remember that home insurance is there to safeguard against any unforeseen accidents or circumstances in the home," said Ms Owens, and she urges those who are concerned about the cost of cover to compare home insurance quotes to find the best deal for them. 

© Fair Investment Company Ltd