Consumers warned against making fraudulent home insurance claims

Despite the impact the recession may be having on their finances, consumers should not be tempted to attempt making a fraudulent home insurance claim.

Britons have been reminded of the dangers of making a false home insurance claim.

Graeme Trudgill, technical and corporate affairs executive for the British Insurance Brokers Association (BIBA), points out those caught making a fraudulent claim on contents and buildings insurance will see their attempt at securing a payout made void.

And as such action is a criminal offence, consumers may find they are subject to criminal proceedings and struggle to get cover again.

"It puts up everybody's premiums and it's not fair on the majority that make fair and honest claims," the BIBA executive points out.

He suggests that while the difficult financial climate might make more people tempted to attempt to make a claim, they are advised "crime doesn't pay".

Such comments follow figures published by Association of British Insurers last month revealing some £255 million was paid out homeowners and businesses for property damage in December 2009 and January 2010 as heavy wintry weather and freezing temperatures gripped the nation.

Posted by Joe Letts