Are Home Insurance Scams Real?

The news in Brecksville, OH has been covering a lot of scams lately, the kind that heavily affects elderly people. Do home insurance scams happen regularly and how can they be avoided? That’s what we here at Ganley Family Insurance are here to help you find out.

What Are These Scams?

Although true insurance scams are relatively rare, it is possible for an insurance company to scam a homeowner out of a little money. Most will be centered around a specific agent acting in their interest. The company itself is not performing the fraud, but the person who represents the company. While rare, they can cost you thousands of dollars.

Most will take the form of asking for too much for a policy as the agent pockets the difference. In this way, the provider gets the money they need, and the agent earns too much. Avoiding this kind of problem is as easy as always asking to see a direct quote from the insurance provider.

Scams From The Policy Holder Are More Common

While it is possible to get scammed from insurance companies, it is relatively rare. The only type that occurs regularly is door-to-door sellers who don’t represent an insurance business. They will typically set up a scenario in which they get money from the person they are scamming. Avoiding this scenario involves never buying policies unless directly contacting a trusted agent. However, real scams are more common from those who are insured.

Why is that the case? Home insurance providers are heavily regulated and their actions regularly scrutinized. It’s a lot harder for them to scam somebody, as a result. However, homeowners can often trick an insurance company with false claims. While also not common, it is a problem that plagues the insurance industry.

You Are Protected

If you live in North Olmsted, Strongsville, or Brecksville, OH and are worried about a scam, please contact us today. Ganley Family Insurance has decades of experience serving the area and will provide you with high-quality and fair coverage.

How will Life Insurance be divided?

When you sign up for Ganley Family Insurance, a life insurance policy payout seems simple enough, right? Whoever you name as the beneficiaries get the money. If only it were always that easy. More than a few Brecksville, OH families have been forced to contend with red tape and lawyers to get their money through the system and to the people it was intended for. Here are some factors that can complicate the process:

  • Minor law. In Brecksville, OH, you don’t want to name anyone under 18 as a beneficiary. It may seem like the fairest way to divide up the payout if you have a lot of grandchildren, but the courts will be forced to assign a guardian of some sort to manage the money until they are of age, and this can be a costly process, even eating up the entire payout intended for the beneficiary. Better to create a trust or send that money to a trusted adult with the understanding that it is to be held for the younger beneficiary.
  • Naming someone who relies on government benefits might not be a great idea. The sudden surge of income might make them ineligible for their benefits without giving them any permanent financial footing to get by once the insurance money runs out.
  • In some states, you spouse or partner needs to sign a waiver if you want to name someone else as a primary beneficiary, but not in Ohio, luckily.
  • Taxation comes into play if you have three or more people as policy-owner. Better to keep it simple, name your beneficiaries, and trust them to divide the money as instructed.
  • Your will. Here’s the thing: Your will does not affect your life insurance policy, the policy trumps the will, so make sure to talk it over with Ganley Family Insurance if you want to make any changes.

The best way to ensure your money goes to the right people: Keep it simple. Call Ganley Family Insurance and make sure that your named beneficiaries are trustworthy people who will divide the money up as you request.