You have heard all the stories about people setting fire to their homes just to get the insurance money. There are tales of people intentionally leaving windows open during a storm so that they can collect money from their policy after the wind damages their couches. It all sounds like something out of a comedy movie, doesn’t it? Unfortunately, it does happen in real life. The bad news is, in real life it’s not as funny as it is in the movies. In real life most of those people get caught.
Your homeowners insurance specifically outlines the exclusions to all its coverage in the policy. Along with earth movement, water damage, nuclear hazard and neglect, intentional loss is right there on the list of your policy’s exclusions. If you intentionally damage something of yours and file an insurance claim against your homeowners policy, you will not be covered.
Of course there are people out there who still think they can get away with it. If they don’t get caught, then they are off free and clear. Right? If they are just careful enough to set the house on fire without making it look like arson, they’ll be AOK. Right? Wrong.
The chances that you won’t get caught are very slim. After every claim, an investigation is completed and the insurance company will have records from the police regarding your “accident”. If you are found guilty, you could not only lose your coverage, but you could be charged criminally with insurance fraud. Oh, and to top it off, you will be out of a home. You just burned it down, remember?
So think very carefully before you decide to intentionally damage your things. You could be facing some jail time and lose the coverage you have in place. Be smart and take care of your things.