A NY Insurance Fraud Lawyer Explains Property Insurance Fraud
Homeowners insurance provides coverage in the event of a robbery; if a home or its contents sustains damage due to fire, flood, man
-made, or natural disaster; or if someone sustains an injury in a home. Policyholders who own a home and whose property is damaged may recover from a homeowners insurance policy as can an individual who sustained injuries due to a dog bite, slip and fall, or other injury on property.
Both policyholders and those who claim injury and seek compensation may be guilty of home insurance fraud if they knowingly submit a false claim to a homeowner’s or renter’s policy. A false claim is a claim that is made to obtain damages or compensation in excess of actual covered losses sustained. Home insurance fraud cases can lead to criminal charges as well as civil action by the insurer.
Most cases of home insurance fraud are handled on the state level. Other charges, including burglary and arson, may apply for certain types of property insurance fraud. An experienced NY Insurance fraud attorney at Bukh Law Firm, PLLC can provide legal representation in situations where you have been accused of home insurance fraud or any related offenses. Whether you face state or federal criminal charges for allegedly defrauding an insurance provider, our team of legal experts has the knowledge and experience necessary to help you negotiate a plea deal or fight to avoid conviction.
What is Property Insurance Fraud?
Homeowners insurance fraud or property insurance fraud may be committed against a homeowner’s insurer or a renter’s insurer. Homeowners and renters policies provide details on covered events and coverage limitations. Homeowners and renters also have a deductible that must be paid before a policy provides compensation for losses.
Any time a homeowner seeks to circumvent the required deductible; obtain coverage for an event that should not be covered; or obtain a broader amount of compensation than is necessary to provide payment for covered losses, this is defined as home insurance fraud.
The fraud rises to the criminal level when an attempt is made to misappropriate any funds from an insurer. The insurance fraud does not need to be successful in order for a person who attempted the fraud to face criminal charges. Any person involved in any aspect of a property insurance fraud scheme may also be charged with all criminal actions committed by co-conspirators.
Types of Home Insurance Fraud
Home insurance fraud takes many forms including:
- Intentional damage of property in order to make an insurance claim. Arson is one example of intentionally damaging property. NY Penal Law imposes penalties for criminal arson in Article 150 so you could be charged for both the arson and the fraudulent insurance claim.
- Faking the theft of property or staging a fake burglary. Article 140 addresses burglary and related offenses and those involved in a staged theft could face charges for both insurance fraud and burglary.
- Attempting to cover a deductible. If you ask a repairmen to overstate an estimate or bill more in order to cover the deductible, this is a form of insurance fraud.
- Overstating the value of items that were stolen or damaged in a covered claim
- Providing dishonest information about the extent, location, cause, or date of legitimate damage.
- Staging an accident and resulting injury on the property. Staged accidents are done so the “victim” can make a liability claim. Falsifying medical bills for treating “injuries” is also a related fraud offense.
- Concealing on an insurance application that a property is being used as a rental or commercial business.
These are among the different types of fraud schemes that could be considered property insurance fraud and that could trigger legal action. An experienced New York insurance fraud lawyer can help you if you are under investigation for any fraud in connection with a claim you have made.
Penalties for Home Insurance Fraud
Penalties for insurance fraud are set forth in Article 176 of the New York Penal Code. There are different degrees of insurance fraud depending upon how much the fraud scheme was intended to improperly recover from the insurer. Insurance fraud rises to the felony level as soon as the scheme involves $1,000 or more in fraudulent claims.
Contact a NY Property Insurance Fraud Lawyer
Being accused of home insurance fraud means you must be proactive in protecting your rights. Contact Bukh Law Firm, PLLC as soon as possible when an accusation of fraud is made so you can begin exploring defenses and so you can develop a strategic plan to fight for a not guilty verdict.
