Making a false insurance claim could cost you your home

False claims and policyholders exaggerating the cost of damage costs the insurance industry £1.5 billion a year.

With fraudulent claims on the up and the cost of recent flood damage rising, insurance companies are continuing to crack down on false or inflated claims.

One of the ways they deter false claims is by sharing information with mortgage lenders and credit card providers, which could potentially make it much harder for claims cheats to obtain credit.

John Beadle, RSA's counter fraud manager, said: "The reality is that insurance fraud adds a significant amount to overall claim costs and it's the honest policyholders who are the true victim, Fraud adds five per cent onto their insurance bills"

He added "Consumers need to be aware that in the near future we will be able to monitor fraud across a spectrum of financial products. So if a person commits fraud on a claim and is detected, other companies, like mortgage lenders and credit card providers will be aware of it".

You've been warned!