Liar Liar, House on Fire, Results in $4 Million Judgment Against Homeowners

Originally published by Brandee Bower.

We’ve all heard that ‘crime doesn’t pay’ but plaintiffs in Akers v. Auto-Owners1 clearly forgot this adage, as they attempted to defraud the insurance company out of millions of dollars. As we at Merlin Law Group always tell our clients, be honest.
In this case, the insureds built a 20,000 square foot home and shortly after construction was completed, a fire occurred and damaged the house. The home was insured by Auto-Owners. It contained a “Concealment or Fraud” provision as follows:

This entire policy is void if, whether before, during or after a loss, any insured has:

a. intentionally concealed or misrepresented any material fact or circumstance;

b. engaged in fraudulent conduct; or

c. made false statements;

relating to this insurance.

Auto–Owners made several large payments under the policy to the homeowners. It paid the policy limit under the “dwelling” endorsement, paid for debris removal, damage to the pool house, personal property, and…

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