Honesty is the only policy – fronting is fraud

The recent reports of MP Andrew George's expenses claims (which allegedly include a home insurance policy in his daughter's name) is a warning to all homeowners who are tempted to engage in risky ‘fronting' behavior, where incorrect names are put on polices. Whilst it is unlikely Andrew George did this to benefit from cheaper premiums the consequences of ‘fronting' are highlighted below.

Darren Black, Head of Home Insurance, said: "The practice where someone else acts as the alleged policyholder is called ‘fronting' and is classed as insurance fraud. If it is discovered that ‘fronting' has taken place, policyholders run the risk of invalidating their entire policy.

"Premiums are based on the risk customers have declared to be true at the point of sale. Once they have entered into the insurance contract, they are accepting everything provided in the application to be true. If it is later discovered that the information provided was not an accurate or true representation of their insurance needs, the provider has every right to decline all subsequent claims and terminate the agreement the customer has with them. In some cases it may result in prosecution

"There are around 300,000 second homes across the country and insuring them is not difficult. There is simply no need to put the policy in somebody else's name and run the risk of invalidating the insurance.

"Honesty is the only policy when it comes to home insurance. Fronting is fraud and those participating in such an activity are showing some front, in more ways than one."