A new report by the Association of British Insurers (ABI) has found that the credit crunch has led to an increased number of fraudulent home insurance claims .
The research revealed that 55,000 false home insurance claims worth £110 million were made last year, and one in five policy holders would not rule out lying to insurers to gain money in the future.
One woman extended her home insurance the day before she claimed on a lost engagement ring, causing the company providing the cover to query the claim.
Total fraudulent insurance claims, including motor and travel along with home insurance, added up to 107,000 false claims (up 17 per cent on 2007) worth £730 million (up 30 per cent).
Nick Starling, the ABI's director of general insurance and health, said: " Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats."
Those financially affected by the economic downturn have been helped out by Lloyds TSB, who have offered a six-month waiver of home insurance premiums to those made redundant between now and the end of the year.




