Free Home Inventory Software is available to smooth the road for your insurance claim. Why does the road need smoothing? It's a fair question with a simple answer: insurance providers are concerned about insurance fraud. The Insurance Information Institute website was a great place to find out more; here's what I learned…



A recent post estimates that ten percent of the global insurance industry's incurred losses are attributable to insurance fraud of all types. The value they put on that percentage is staggering; $30 billion.

Insurance companies responded by organizing to combat fraud. First, about 80% of insurance carriers set up in-house Special Investigation Units to root out and investigate suspicious claims. Software programs were adopted by these offices that “data mine” in search of anomalies and repetitions in claims. Second, they joined forces by forming multi-company organizations such as the Coalition Against Insurance Fraud, and the National Insurance Crime Bureau (which sounds governmental but is a not-for-profit organization). These groups share relevant data and provide training for member company employees working in the Special Investigation Units. Lastly, they provided industry funding to help form fraud bureaus in states that were slow to implement them on their own. Of course, insurance fraud is illegal and one can be taken to court for it.

All of that to say, insurance companies are not looking the other way.

I don't like insurance fraud either. Let's be reasonable about this; we are talking about long established, for-profit companies. If they incur ten percent losses due to insurance fraud, that fraud is costing at least a ten percent increase in our premiums. While most customers are honest, the trend seems to be moving in the wrong direction. A recent study by the Coalition Against Insurance Fraud found that 9% of respondents in 1997 thought it was acceptable to “misrepresent facts on an insurance application in order to lower their premiums”; in 2008, 18% found it acceptable.

Home Inventory Software from freehomeinventorysoftware.com takes the guess work out of a claim by providing digital images, descriptions, serial numbers, costs, and other information to the insurance carrier. Once you have reassured them that you owned what you claim to have lost, be it by theft, fire or natural disaster, payment should be made faster and should be the largest amount to which you are entitled.

What would insurance fraud look like relative to homeowner's or renter's insurance? The industry term for one such form of fraud is “padding”. A claimant who is padding increases the value of the items listed in a legitimate claim. This is commonly done to cover the cost of the deductible on the policy. However, if the claim was filed with Free Home Inventory Software substantiating it, the “padding” concern is completely eliminated.

Use of the software is very easy. All you need to do is install the software, upload pictures of your furniture, jewelry, tools, clothes etc into the software, add descriptions to each item, cost of each item and then store the information. By taking these precautions, you will now be able to file and insurance claim with confidence.