How Manufactured Communities Can Minimize the Risk of Fraudulent Insurance Claims
According to the National Insurance Crime Bureau (NCIB), fraudulent “slip and fall” insurance claims are up by more than 40 percent since 2008, and because of their large physical areas and numerous potential hazards, manufactured housing communities can be attractive targets for false claims. Pat Flynn of Propel Insurance – a partner of ProSight Specialty Insurance that provides tailored insurance products for more than 2,000 manufactured housing developments across the country — says that meticulous record keeping is the best way to prevent scammers from “working” a manufactured community.
In order to protect themselves, Flynn recommends three best practices for owners and managers of manufactured housing communities to minimize the risk of fraud:
Accurately document all physical improvements and repairs. By ensuring that all maintenance work is properly logged, property managers can demonstrate their commitment to physical safety and injury prevention, and also show that common areas are properly maintained.
Record the time and date of all weekly property walk-throughs. By showing that you carefully inspect your community on a weekly basis, you can argue that an alleged “accident” was not caused by negligence, but rather by a very recent physical change. This can be extremely important during the claims process and can reduce or eliminate liability.
Report all “incidents” to your insurance company as soon as you are notified. Effective defense against fraudulent claims requires aggressive and fast action. The sooner that your insurance company can initiate a thorough investigation and gain control of the process, the more likely it will be that a person filing a false claim will realize that their scam will not go unchecked.
Your manufactured community doesn’t have to become another NCIB statistic. Stay on top of your record keeping and reporting. Through its partnership with Propel, ProSight offers decades of industry experience, claims specialists dedicated to the manufactured housing sector, and the ability to offer a range of products that will provide you with the best possible protection.