Sinkhole Fraud

Insurance fraud in Florida is a criminal felony offense. If someone files a claim with the intent to defraud an insurance company, he or she may be liable for insurance fraud. Whenever filing a claim for insurance benefits, whether it be sinkhole related damage or something entirely unassociated, it is important to always be upfront and truthful.

Not only is sinkhole fraud illegal and can possibly subject someone to criminal penalties, fraud is also grounds for an insurance company to deny a claim and cancel an insurance policy.

Types of insurance fraud that may occur in sinkhole claims may include:

• Lying about the true Date of Loss - intentionally and fraudulently either pre or post dating the discovery of sinkhole damage.
• Lying or incorrectly answering questions during the insurance application process. In Florida, any misstatement of material fact during an insurance application can be grounds for the insurance company to rescind coverage and deny your claim. It is important to answer application questions as truthfully as possible.
• "Faking" damage to make a claim appear more favorable for the homeowner. Although rare, a homeowner should never do anything to make damage worse - for instance, hitting cracks with a hammer to try to make them bigger.
• Failing to disclose previous known sinkhole activity to future insurance companies.
• Failing to disclose previous sinkhole damage and claims to future homebuyers.

Mistake Vs. Fraud

Fraud is always a mistake, but a mistake is not always fraud. Being legitimately mistaken about something is not fraudulent many times. For instance, if you answered a question on your insurance application, believing it to be correct even though it later turned out to be incorrect, that is not fraud. If you purchased a home with prior sinkhole damage, but you didn't know the home had prior sinkhole damage and thus didn't disclose it that is not fraud!

Nonetheless many insurance companies may try to cancel, rescind and deny your claim based on any indication whatsoever of fraud. If you have any questions concerning insurance claims and potential fraud, or your insurance company has denied your claim or requested you submit to an examination under oath where fraud might be a factor, it is important to speak to an experienced sinkhole attorney, such as Attorney John Byrne of the Byrne Law Group. John Byrne can help you understand your rights, and if need be represent you in dealing with your insurance company to ensure that your rights are protected and insurance lawyer do not take advantage of you. Call John Byrne today for a FREE no cost, no obligation consultation at 813-413-6565 today.