Do you know anybody who has faked a burglary to claim insurance?

If you do and do not get caught, all that happens is the company increases your premium when you make a claim. Whilst you might get a lump sum at once, over the next 20 or so years that you pay extra because of the false claim you made, the insurance will earn it back and more.

If you get caught, you're in real trouble. At the very least you will never be able to get insured again, at least not at a reasonable premim because you have deomnstrated yourself to be a dishonest person. An insurance contract is odd because it requires total and honest disclosure of anything relevant to computation of risk. As you hold all of the information necessary to compute that risk, the insurer is placed in a very vunerable position as he has to trust you to make full and honest disclosure.

By making a false, you show you cannot be trusted, and this will be noted for any application you make for furture coverage. Yes, insurers share information, and if you apply for cover without disclosing a past non-dsiclosure, fraudulent or otherwise, then the contract can be avoided by the insurer and if there has been a lost incurred, they can refuse to pay. For fraudulent claims, the insurer is allowed to retain the premiums paid too.

Not only that, but a false claim is a fraud with both civil and criminal implications. In short, don't do it, it's stupid.

For the idiot who said this: "yes insurance firms are a rip off so why not rip them off."

One reason not to is because everyone ends up paying for a fraud. If an underwriter has a large number of claims, it just raises everyone's premiums across the board to recover the loss. So if you 'rip off' an insurer, all that happens is you steal from everyone else covered by the company.

In terms of being 'ripped off' by an insurer, you are not. Underwriters take on a risk. They agree to pay the insured on a certain event occuring. They agree a sum for doing so, allowing the risk of a huge lump of money suddenly being required to aid in the event of an incident occurring not having to come out of your pocket. Mega rich people do not have insurance for small things (except for those mandated by law). Why? Because they can afford to shell out on an accident occurring and so do not need to spread the risk, or its cost. If you can afford not to use an insurer, don't. If you cannot afford to foot the bill for flood damage to your house, or to pay for legal bills if you hit them with a cricket ball coming out of a ground, then get insurance.

"not actually faked that is a bad idea but being creative with stolen items and damaging good yes virtually all claimants do it "

Silver Fox, this is still a fraud with the above implications. And being creative is faking it.