The opportunities for misrepresentation are many and whilst insurers are clear that the majority of insurance consumers are genuine, the need to protect their bottom line and their honest policyholders from the financial impact of fraud necessitates a forensic approach to policy applications.
Common fraud/risk typologies used to achieve lower property insurance premiums are:
- Rental properties insured as owner occupied.
- Non-disclosure/misrepresentation of property attributes e.g. number of bathrooms linked to escape of water risk.
- Non-disclosure/misrepresentation of multiple occupancy at a property.
- Misrepresentation of the size or construction of the property and its condition.
- Non-disclosure of previous claims history.