Insurance fraud rising, figures show - Home insurance - News - Moneyfacts


Insurance fraud rising, figures show

Insurance fraud rising, figures show

Category: Home insurance

Updated: 27/11/2012
First Published: 16/04/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Fraudulent insurance claims rose by 17 per cent in 2008, fresh figures have revealed.

Home insurance fraud was identified by the Association of British Insurers (ABI) as the most common - with 55,000 false or exaggerated claims over the course of the year.

This has contributed to total of 2,000 such claims being made each week, costing around £14 million.

Director of general insurance and health at the ABI Nick Starling warned that cheating will make it more difficult for a consumer to obtain a cover in the future.

And noting that the typical policy is £40 more expensive as a result of false claims, he said: "Fraud thrives in a recession, so insurers are intensifying their crackdown. The harder we make it for the cheats, the more competitive premiums will be for honest customers."

Sainsbury's Finance recently found that over 520,000 people have reduced their home insurance cover as part of cutbacks being made during the downturn, with a further 420,000 cancelling altogether.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Planning some DIY? Don't lose out!

The August Bank Holiday is almost upon us, and that can only mean one thing – DIY! But while tackling those jobs around the home is a common pastime for a long weekend, just make sure it isn’t a false economy…

Home insurance premiums remain at record low

The cost of the average combined buildings and contents insurance policy is at its lowest level in four years, the Association of British Insurers’ latest Home Insurance Premium tracker has revealed, with a typical policy currently costing just £309.

Secure your home before your holiday

Going on holiday is an exciting time, but in the midst of all that anticipation, it can be easy to neglect the home you’re leaving behind. That’s why M&S Bank is urging holidaymakers to properly secure their home against thieves before they jet off.