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Short Selling
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Posted On :
Jun-11-2009
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Article Word Count :
466
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According to the body which looks after the insurance industry (the ABI) fraudulent insurance claims are on the rise.
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According to the body which looks after the insurance industry (the ABI) fraudulent insurance claims are on the rise. The general consensus is that this may be as people offer inaccurate information on their insurance applications in order to get cheaper policies.
Other research recently conducted has found that many Britons have under-insured the contents of their homes. Most likely this is, to some extent, unintentional, but the ultimate result is that their insurance company will still consider the policy to be invalid. The gulf between the actual value of people’s homes are their estimate is quite enormous – the average home is generally under-insured by as much as £8,000.
That is not to suggest that everyone who has miscalculated the value of their possessions is committing insurance fraud. There is a possibility that people may have not taken into account new items that they may have bought and not counted for inflation and the rise in the price of precious metals that has raised the cost of jewelry to a new high.
Having said that, the idea of someone’s possessions going up in value by £8,000 without their awareness seems unlikely. It is much more probable that people are deliberately under-insuring the value of their homes in order to get cheaper insurance policies and therefore save a little cash.
Now, this isn’t even one of those ideas that seems sensible on the surface. Whilst they might save money on their monthly bills, if they ever have to make a claim it’s more than likely that the insurance company will declare the policy invalid and refuse to pay out. Of course the gamble is that they won’t have to make a claim, but when you’re talking about potentially hundreds of thousands pounds of damage, it surely is better just to pay for the right policy?
Whilst Britain as a whole under-insures itself another report has suggested that some people are accidentally doubling their insurance. Many expensive items these days are sold with their own insurance involved, but these items are already covered on the general home insurance policy and therefore the extra insurance is a waste of money.
The best insurance policy is the one that is most closely tailored to your specific circumstances. The more accurate you are the better value deal you will get and there is little point paying for a policy that doesn’t protect you properly, if at all.
Home insurance does not have to be expensive, however, and it is possible to find some very good deals at the moment without accidentally or intentionally committing fraud. One company that is offering particularly good deals at the moment is Co-operative Insurance and might provide a good place to start your search for a policy.
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Article Source :
http://www.articleseen.com/Article_Short Selling _1087.aspx
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Author Resource :
The Co-Operative Insurance. Let us help your home insurance needs.
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Keywords :
home insurance,
Category :
Finance
:
Insurance
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