In the case of Sunflower Condo. Ass’n v. Owners Ins. Co., No. 16-cv-02946 (D. Colo. 2018), a homeowners association submitted an inflated claim for hail damage. The matter eventually entered the lawsuit stage, and the insurer asserted a counter claim against the HOA.

Following a one-week trial, the jury found that Sunflower had violated the policy’s anti-fraud clause. The verdict makes it clear that policyholders have to make sure that claims submitted on their behalf are factually supported, and not exaggerated. Every item must be carefully examined before a claim is submitted.