Understanding The Elements of Insurance Claims Fraud

Having insurance can help individuals cope up with emergency expenses. Natural calamities such as hurricanes or tornadoes can leave so much damage on the affected area. While disasters can bring out the best in people, it can also bring out the worse in them. It is during these situations that criminals emerge and take advantage of the situation. The National Center for Disaster Fraud reveals that insurance fraud can become prevalent during catastrophes.

Texas insurance claim attorneys of Williams Kherkher will tell you that it is during disasters that unscrupulous insurance companies will deny individuals of their legitimate claims. In the face of disaster, there are different types of fraud that will arise. Disaster fraud is a deliberate act of deceiving individuals or the government after a catastrophe. Here are some examples of fraudulent schemes after natural calamities:

Charitable solicitation fraud

This type of fraud refers to the solicitation of funds by posing as a legitimate charitable organization. It may involve people or websites that claim to raise funds for disaster victims. These fake websites collect credit card numbers and other personal information of the donors.

Price Gouging

This is an act of businesses or individuals that involves increasing of the price of goods that are in demand or in limited supply in the disaster-stricken area.

Contractor And Vendor Fraud

This fraudulent act happens when individuals pose as contractors or repairmen but do not really intend to repair damage or complete the job.

Disaster-related Property Insurance Fraud

This is a type of fraud committed against insurance companies by inflating losses, faking repairs, claiming lost services, or intentionally causing property damage in order to collect insurance premiums. It can either be hard or soft. The former occurs when there is a deliberate fabrication of a claim. The latter, on the other hand, takes place when a normally hones person pads a legitimate claim.


Forgery includes various practices such as reimbursing stolen checks from mailboxes, submitting false building permits and receipts for claims, and forging insurance and Federal emergency assistance claims.

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