Direct Line has warned that more than half of all blocked drain claims made by claims management companies (CMCs) are “invalid, inflated or fraudulent”.
The BBC has reported that the insurer has found that some claimants are also paying thousands of pounds to CMCs to handle their claim even though most people have cover for blocked drains as part of their home insurance.
Direct Line has estimated that the number of blocked drain claims increased by 22% in the first quarter of 2017, compared to 2016. It has examined more than 2,000 drainage claims made in the last year and found that 54% of them inflated or invalid, costing UK insurance companies some £2 million.
Direct Line says that in some cases drainage firms are selling details of their clients to CMCs who then approach householders, informing them that they will take 10% of any payout made by an insurance company.
“It is important that vulnerable customers who have an issue with their property are not taken advantage of by companies that are looking to profit from their misfortune,” said Katie Lomas, director of Direct Line Home Insurance.
“Fraudulent and inflated claims drive up the cost of policies for all consumers. Anyone that thinks they may need to make a claim on their insurance policy should contact their provider directly.”