Is writing a second contract for the insurance company fraud?

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

Dave Kowalski

Homeowner who wants a deck and basement finished fast

Listen

1. ARefuse immediately. Creating a fraudulent contract for insurance purposes is a crime. One contract, one price, documented honestly
   Correct

   Creating dual contracts to defraud an insurance company is insurance fraud — a criminal offense in Maryland. Both you and Dave would be liable. Beyond criminal charges, this would result in immediate MHIC license revocation, insurance policy cancellation, and potential civil suits. 'Everybody does it' is what people say right before they get caught. One contract. One price. Zero prison time.

2. BWrite one contract at $40,000 — what Dave tells his insurance company is his business, not yours
   Acceptable

   You're right that Dave's insurance claim isn't your direct responsibility, as long as you provide one honest contract. However, if you know he's planning fraud and you facilitate it in any way (inflating the contract, providing misleading documentation), you become an accessory. Keep your paperwork honest and let Dave handle his own business.