Renters Insurance Fraud | Details about Renters Insurance Fraud

This kind of fraud is when someone does something dishonest to insurance. It is usually to get money. Some estimates say that they get cash (about 10%) from that property, and these companies’ payout goes to false claims. Let’s learn about renters insurance fraud.

What is Renters Insurance Fraud, Anyway?

Renters Insurance Fraud

Renter’s insurance fraud is when someone gives false or misleading information or makes a false statement to an insurance company that covers renters. Renter’s insurance fraud could be a reality to anyone who takes part in a plan to trick an insurance company. 

Those who are part of a renter’s insurance fraud scheme with multiple co-conspirators can receive charges for all crimes committed by co-conspirators as part of the plan to defraud an insurer.

Are there penalties for insurance fraud on people who rent or own their homes?

Even if you don’t receive charges with a felony or resulting in a not guilty verdict, going under investigation for fraud could make it hard for you to get insurance later. Think about how many home loans require a homeowners’ policy as part of the terms you have because of the loan. 

How can I protect myself from scams with my homeowner’s insurance?

Just tell the truth when speaking with the insurer. When purchasing your first homeowner’s insurance policy, you will be quizzed on the location, state of affairs, and history of claims. Answer the questions truthfully. In the event of a catastrophic event, you should call your insurance provider as soon as possible to begin the claims process. Tell the truth about your losses.

Don’t forget to take care of any issues you find during a routine maintenance check. The insurance company may become suspicious if you ought to file a second claim while the first one is still open. 

Holding others accountable for their actions is another way to safeguard you. You should be wary of contractors who promise to “cover your deductible,” but don’t mean it. This could imply that you will receive a discount, but your insurance will be billed for a higher amount than what you owe.

As a result, your homeowner’s or renters’ insurance deductible will be covered by your insurance payment. No matter how clueless you are, accepting this offer could lead to a scam on your homeowner’s or renter’s insurance. 

What if you die because someone lied to your insurance company?

While learning how to commit insurance fraud, you won’t be able to reap the rewards of your efforts. So, before you try to defraud someone for a large sum of money, ensure you have a way out and won’t die or be seriously injured. Renters insurance is a rip-off, so you should be able to take advantage of it.

Wrong. Renter’s insurance is designed to pay out money for legitimate claims not caused by the insured’s bad behavior.

There’s a good chance they’ll find the gas you used to start the fire, or a friend will notice that you have a candle burning in your room when you’re allergic to scents. Fraud in the insurance industry can be detected immediately if the smallest details are incorrect.

How to easily cheat insurance companies and get away with it

If you want to learn how to commit insurance fraud, the things above are all things you shouldn’t do. Why? Because they are all based on true stories of people who tried and failed, they didn’t get extensive checks, though. Instead, they had more problems than they did before. So, if you want to know how to commit insurance fraud, the honest answer is “don’t.”

Why? Because insurance companies have teams of people whose job is to find this kind of fraud. People often talk themselves into a corner to “get away with” something. Because what you say gives everyone something to think about for the rest of their lives because it doesn’t work, plain and simple.

Types of Fraud in Renter’s Insurance

Renters Insurance Fraud

There are many ways to cheat on a renter’s insurance, such as:

When you overstate your losses or tell repairmen to overstate the cost of repairs, this is a “deductible fraud.” You can do this so that your insurance company will pay for all your losses, and you won’t have to pay your deductible.

Overestimating how much money was lost: You say that things that were stolen, broken, or lost were worth more than they were so that you can get a bigger payout.

Making a false claim for compensation should be: You are committing renter’s insurance fraud if your policy didn’t cover certain types of damage, but you lied about how it happened to get money from your insurance company.

Who needs insurance for renters?

Renters insurance is a good idea for anyone who can’t afford to fix or replace their things or doesn’t want to pay for everything if something goes wrong. Think about everything you own and how much it would cost to replace everything if a pipe burst. 

This can add up quickly, and renters insurance can help protect you from any costs you didn’t expect. What’s the difference between insurance for renters and insurance for homeowners?

Both renters insurance and homeowners insurance protect your things, but there is one significant difference between the two. Homeowner’s insurance also covers the building itself or the structure. Renters insurance is mostly for protecting your things. You usually get liability coverage, but the policy won’t save the apartment. The building’s owner will have insurance to cover any damage.

Should renters have insurance?

No law says renters must have insurance. But it is not unusual for landlords to make renters get insurance to sign a lease. They are allowed to do this, so if you haven’t already, be ready to buy renters insurance when you fill out a rental application.

Can roommates get renters insurance together?

Yes, in a sense. You may be able to add a roommate to your renter’s insurance policy. But before you do that, you should think about it. You’ll be covering twice (or more) as many things so that you may use up your insurance limits faster. Also, if you or your roommate moves out, you’ll have to sort out your rules. This can be challenging if you don’t get along. Renter’s insurance doesn’t cost much, so each roommate should get their policy to cover their things.


It is thought that (non-health) insurance fraud costs more than $40 billion annually. The average American family pays between $400 and $700 more yearly premiums because of fraud. 

The Criminal Investigations Unit looks for and investigates business and individual insurance fraud. Some of the types of fraud we deal with are medical fraud, staged car accidents, property fraud, and claims for injuries that are worse than they are.


Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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