After settling a property claim, the adjuster discovers the insured committed fraud — they inflated the value of damaged items and included items that were not actually present. What can the insurer do?

Insurance fraud response:

Policy provision: All property policies contain a fraud/concealment provision — if the insured willfully conceals material facts, misrepresents, or commits fraud, the insurer can void the entire claim and potentially the policy itself.

Insurer options: Deny the entire claim (not just the inflated portion) — most policies void the entire claim for any fraud, not just the fraudulent portion; Rescind the policy; Seek civil recovery of any amounts already paid; Report to state insurance fraud bureau AND law enforcement.

Adjuster responsibility: Document all fraud indicators; consult with Special Investigations Unit (SIU); do not make coverage payments while fraud investigation is pending; preserve all evidence.

Practical note: Overstating claims by even modest amounts (adding a few extra items) can void the entire claim — the 'void for fraud' provision is powerful and courts generally uphold it for clear fraud.