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Insurance company may deny claims when applicants lie

On Behalf of | Oct 24, 2017 | Insurance Defense

Telling a white lie every now and then is something most everyone does. After all, New York may not be a very pleasant place to live if everyone told the harsh truth. Nevertheless, there are certain circumstances under which one should always be entirely truthful. One of those is when dealing with an insurance company. Customers may not realize the importance of being entirely truthful if they expect their claims to be covered.

An insurance claim based on a policy purchased with false information will likely be denied. Customers place their coverage at risk by providing untrue answers to questions on their policy applications. For example, when purchasing homeowner’s insurance, a customer will likely need to identify the people who will live in the home. If the home is not intended for a primary residence, it will require a different kind of coverage. Lying about who will occupy the home may leave a customer unprotected in certain circumstances.

Other questions about which a customer may be tempted to lie to save money or to ensure coverage include identifying the breed of dog they may own or whether they have a pool or trampoline on the property. Some policies may deny coverage for certain dog breeds that are considered dangerous. Owning up to a pool or trampoline may require a homeowner to pay for safety precautions before acquiring insurance coverage.

New York homeowners who lie on their insurance applications may be surprised when the insurance company denies a claim for damage or injury. In fact, those customers may go so far as to file a lawsuit against an insurer who refuses to cover a claim based on false information. When this happens, an insurance company will find a strong advocate in an attorney who is dedicated to finding appropriate resolutions to save time and money for clients.

Source: encharter.com, “Why You Shouldn’t Tell Insurance Lies“, Accessed on Oct. 22, 2017