5 Reasons to be honest on your insurance application
Are you looking to save money on insurance? We all know how tempting it can be to lie when filling out your insurance information. You’re focused on saving a few bucks so that you can travel more or pay down debt. You just want to save up. So you plan on hiding some key information.
Before you make that decision, you need to think through the consequences of such an action. Here are five reasons to be honest on your insurance application.
1. The new addition may not be covered
If you tell your insurance company that you have an old basement and you turn it into a living space or a rental, they may reject any claims to this space in the future. You have to fully disclose everything about your home when you apply for home insurance. The same thing applies to car insurance. You don’t want to hide any upgrades or deficiencies.
2. You could be dropped from your plan
The obvious issue with lying to your insurance company is that they could just kick you off the plan if they’re frustrated with your lying. You don’t want to get into an accident and then find out that your provider is kicking you off the plan because you weren’t fully honest about everything when filling out those forms.
3. You want your home to be protected
Let’s say that you make a claim for your window after a crack and the company finds out that you lied about something else on your insurance application. They may not process the original claim. You really don’t want to do this to yourself. You want to ensure that your home is protected since t’s likely your most valuable asset.
4. The savings aren’t always worth it
I understand that money might be tight and you’re looking to save a few bucks. The problem is that you’re going to lose money in the long run if you are accused of insurance fraud or can’t get a claim processed. You can save money by bundling your home insurance with your auto insurance.
5. The information will get out eventually
You can try to hide some information, but the insurance company will likely perform its own due diligence and find out in the end. You don’t want to get caught up in a lie. You also can’t hide everything.
I don’t want you to lose your home insurance. You’re going to find yourself stuck and feeling hopeless. It’s important to tell the truth or else you run the risk of finding yourself in a sticky situation.