Hobart, IN asked in Federal Crimes, Insurance Bad Faith and Insurance Defense for Indiana

Q: Is this insurance fraud?

I am selling a house as is, the boiler went out causing the heat and plumbing pipes to burst. The homeowners ins is paying for the damage. I'm selling for less now because of the pipes. I'm keeping the ins check to cover my loss. is that insurance fraud?

1 Lawyer Answer
Tim Akpinar
Tim Akpinar
  • Insurance Claims Lawyer
  • Little Neck, NY

A: An Indiana attorney could advise best, but your question remains open for a week. Nationwide, it is usually not fraud if the check was issued for a legitimate loss and it reflected actual damages that were honestly presented for property owned outright. However, there could be other issues involved, such as if the pipes fail again in connection with repair funds not being applied for proper repairs if a subsequent claim is made, or issues of a real estate nature in terms of disclosures made in connection with sale. It would be best for an Indiana attorney to advise here on the various issues that present themselves. Good luck

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