Why You Shouldn’t Tell Insurance Lies

Why You Shouldn’t Tell Insurance Lies

Whether you are guilty of the “I’m on my way” while still not dressed or you’re a bit of a story teller, telling your insurance lies is not something you should do. Do you lie about your insurance? When people speak to their agent it is so crucial they are honest with them about the questions being asked. It can mean the difference between having coverage to replace something or pay for something or being denied by your insurance carrier.

Be honest. We are here to help you and get you the coverage you need, but we can’t do it without knowing the honest answers to important insurance questions. We know we aren’t your therapist; you don’t have to tell us everything, but answering our questions honestly is the best way to protect yourself. Our agents gave us the low down on some questions people may not be completely honest about and why it is so important they are.

Check out these common insurance lies and why you need to tell the truth:

• Home Insurance
• Car Insurance

Home Insurance

Question: Who is occupying your home (or it not being occupied at all)?

Be Honest Because: This determines what type of policy would protect your home. It also makes a difference if the home is a primary or secondary residence or if it is seasonally occupied or occupied year round. If your dwelling is insured on the wrong form, you could be missing out on available coverage, paying the wrong rate, and worst case scenario, your claim is denied if a loss were to occur.

Question: What breed of dog do you have?

Be Honest Because: Most insurance companies have a list of dog breeds that they will not provide coverage for. Or they may need to approve the dog breed before the dog is covered under your homeowners insurance. Lying about the breed of your dog, or not being 100% honest could result in your claim being denied if a loss were to occur or your policy being canceled if the insurance company were to find out.

Question: Do you have any fireplaces or woodstoves?

Be Honest Because: Fireplaces and woodstoves clearly increase your risk of fires. If you have a fire from one of these, but your insurance carrier was unaware you had one, you may have your claim denied.

Question: Do you have a trampoline or pool?

Be Honest Because: With either of these things the risk for bodily injury on your property increases greatly. Some insurance companies will not take on that risk. If you have a pool, your insurance company may require you to have a fence. If someone is hurt on your trampoline or drowns in your pool and you told your insurance carrier you didn’t have one, you will be pay out of pocket for medical expenses or potential legal fees.

Question: Do you plan on renovating the home?

Be Honest Because: Agents see people buying homes and getting insurance for that home then doing updates and additions. Unless you inform your agent about those updates and additions, they will not be covered. By renovating your home, you are increasing the value of the home which increases the coverage needed. If you plan on buying a home, leaving it unoccupied and renovating, talk to your agent about a renovator’s policy. You can then switch once the renovations are completed and you are occupying the home.

Question: Do you have any past claims?

Be Honest Because: Lying could result in your home insurance claim being denied if a loss were to occur or your policy being canceled if the insurance company were to find out you had one.

Question: Do you have a home office or use your home in any sort of business?

Be Honest Because: You want to make sure you would have the liability coverage if a client was injured at your house or that you have enough coverage for business related property if your home suffered a loss.

Question: Have you had a lapse in coverage?

Be Honest Because: Lying could result in your policy being canceled if the insurance company were to find out you had one or a claim being denied.

 

Auto Insurance

Question: Where is your vehicle garaged?

Be Honest Because: Lying about where your car is normally parked at night could save you money on your auto insurance. In the long run, it won’t pay off. In addition to having your claimed denied if you lied, the insurance company could retroactively charge you the correct rate before they paid out on the claim.  So, you’ll end up paying a lot more out of pocket.

Question: Who are the regular operators and household members?

Be Honest Because: The insurance company requires that you list all household members and regular operators of your vehicles. If you have members of your household, especially those with a bad driving history or young operators, you could be left without the coverage you need. It could also obviously result in a denied claim.

Question: Do you use your vehicle for business use?

Be Honest Because: Whether it is delivering pizza, delivering flowers, a real estate agent driving clients around to show them houses, or snowplowing, you want to make sure that additional coverage is added if needed or that there is coverage at all. It may be in your best interest to have commercial insurance for your vehicle. Either way, lying can result in denied claims or canceling of policies.

In most cases, you can very easily have your claim denied when you lie about questions your insurance agent asks.  The reason these questions are asked is because they affect your coverage. Lying to get a better rate leaves you vulnerable for situations where you are paying huge out of pocket expenses.

If you have questions or need a quote give our agents a call at 888.865.1244.

 

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