5 Ways to Avoid Home Insurance Fraud

​Home insurance fraud is when your contractor offers services that are often misleading. These are generally illegal and unfair insurance policies, such as unsatisfying damage coverages once you filed a claim. This shared concern of getting scammed frightens potential clients for getting covered. Here are the tips and insights to avoid spending unnecessary or questionable applications.

Check the Policyholder’s Background
There are distinct characteristics of what a genuine policyholder is. They commonly provide their physical office address, active phone number, insurance license, and proof of transactions. On the other hand, a fraud estate agent usually demands cash payments while offering many inexpensive policies.

Evaluate Shady Policies
Policies and services being offered by fraud contractors are surprisingly affordable and full coverage. Consider evaluating the documents and application forms they would let you fill-up. Do you think it lacks specifications and relevant information? If not, you might as well ask for a backup or send it to your local district administration to have it check.

Estimate Equipment and Defective Construction 
Some contractors or policyholders utilize low-cost materials and hire unskilled workers as you claim for damage repairs. They usually do this to get a higher profit from the actual value of your loss. To avoid scenarios like this, request for liquidation or be educated about the materials they use.

Assess Unseemly Permits
Do note that there is always a permit whenever there are repairs or construction commitments. Assess the license of your replacement damage coverage, was the property inspected and matched the standard of codes and requirements? If your contractor could not dispense your permit and began renovation, there is something unjust. 

Consider Payment Transaction
It is not a common practice for policyholders to demand a full advance payment. If they threaten you with a problematic coverage consequence, you should think twice about establishing a partnership with them.

No one would prefer to put their financial attributes at risk. People consider filing a claim to save some money and not to experience getting scammed. That is why it is essential to acknowledge and evaluate your contractor's background and know your rights as an insured individual.

At Priority Insurance LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (864) 297-9744. Get your free quote today by CLICKING HERE.