Nebraska Department of Insurance

NEBRASKA DEPARTMENT OF INSURANCE INSURANCE FRAUD PREVENTION DIVISION 941 O Street, Suite 400 Lincoln, NE 68508-3639

Property Loss Fraud Hints - Fire, Theft, Burglary

It is important to remember that the hints listed below are merely possible "red flags" that there may be some evidence consistent with an insurance fraud scheme.  Any one or two of these by themselves, may not raise your suspicion; however, when you have several of these hints present or a pattern begins to emerge, you should investigate further or forward your suspicion to the Insurance Fraud Prevention Division.

1. The insured is deeply in debt or in bankruptcy.
2. The insured is recently divorced or separated.
3. The insured is unusually calm.
4. The insured is willing to accept an inordinately small settlement rather than document all claim losses.
5. The insured's demeanor changes radically during the claims process.
6. No one at home at the time of loss, including the family pet.
7. Loss occurred late at night - after 11:00 p.m.
8. Claimant is suspicious of public officials.
9. Police notified late or after claim is reported to insurance company.
10. No apparent sign of forced entry.
11. Neighbors report movement of items out of home/building prior to loss being reported.
12. Large, outstanding utility bills or property taxes.
13. Building and/or contents for sale at time of loss.
14. Property is part of divorce settlement, argument, or agreement.
15. Property in disrepair, condemned, or to be demolished.
16. Property, normally close to premises, is moved just prior to loss.
17. Entry to property is blocked; firefighters cannot gain access.
18. Fire department reports fire cause is incendiary, suspicious or unknown.
19. Evidence suggests use of an accelerant.
20. Fire with multiple points of origin.
21. Windows and doors opened for ventilation.
22. Fire conceals another crime such as burglary or murder.
23. Fire alarm and/or sprinkler system failed to work at the time of the loss.
24. The insured had a loss at the same site within the preceding year.
25. Commercial losses include old or non-saleable inventory or illegal chemicals/materials.
26. Property loss site is claimed by multiple mortgagees or chattel mortgagees.
27. Fire scene investigation suggests that property/contents were heavily over-insured.
28. Fire scene investigation reveals an absence of remains of non-combustible items of scheduled property or items covered by floaters, such as coin or gun collections or jewelry.
29. Fire scene investigation shows absence of remains of expensive items used to justify an increase over normal 50% contents coverage such as antiques, piano, or expensive stereo/video equipment.
30. Fire scene investigation reveals absence of items of sentimental value, such as family Bible, photos, or trophies.
31. Fire scene investigation shows an absence of remains of items normally found in a home or business.
32. Contents list includes items of high value recently purchased.
33. Contents list includes a large amount of cash.
34. Contents list includes serial numbers that owners do not typically record.
35. Contents list includes detailed inventory including receipts for older items.
36. Contents list includes items allegedly purchased overseas with no proof of purchase.
37. Claimant's list differs significantly from police report list.
38. No proof provided for recent, expensive purchases.
39. Value of items is not consistent with claimant's income.
40. Several items recently added to the policy.
41. Face value of policy greater than market value of property.
42. Claimant refuses replacement items.
43. Handwriting or typeface is the same on receipts from different stores.
44. A single receipt has different handwriting styles or typefaces.
45. Receipts show incorrect tax or no sales tax.
46. Receipts are in whole dollar amounts.
47. Receipts are generic, with no store logo.
48. Receipts are sequentially numbered or in reverse of purchase date.
49. Credit card receipts have no or incorrect approval code.
50. Receipts and owners manuals destroyed in the loss.
51. Losses include total contents of business/home, including items of little or no value.
52. Losses are questionable, such as a home stereo stolen out of a car or a fur coat stolen on a trip to Hawaii.
53. Losses include numerous family heirlooms.
54. Losses include numerous appraised items and/or items of scheduled property.
55. Extensive commercial losses occur at a site where few or no security measures are in effect.
56. Insured cannot recall place and/or date of purchase for newer items of significant value.
57. Insured indicates distress over prospect of examination under oath.