owners may be turning to a drastic form of insurance fraud -- burning down their own homes.
Arson insurance fraud involves home and business owners setting fire to their properties so that they can get
insurance money to pay off loans and mortgages. While arson is nothing new, it may be especially enticing
to those who owe more on their mortgages than what their homes are worth, according to the Coalition
Against Insurance Fraud.
If a fire is an accident, or if a random arsonist sets fire to your property, your insurer will pay your claim.
However, if you set the fire on purpose (or if you hire someone to do it), your home or business insurance
company will not pay for it -- and you could end up in prison.
Arson is a serious crime in all 50 states, and the statistics are unsettling. According to the Insurance
Information Institute, more than 56,000 cases of arson were reported to the FBI in 2010. And this was
actually a drop from 2008, when 63,253 offenses were reported.
About 14 percent of arson cases are insurance-motivated, according to the Insurance Research Council,
and it's an expensive crime. Arson led to the destruction of nearly $800 million worth of property in 2010 --
down from about $1 billion worth of property damage in 2008, according to the National Fire Protection
Association.
Insurance companies and law enforcement alike have an interest in thoroughly investigating the true origin
of fires because arson can cause tragic loss of property and life -- and boost the cost of insurance for all
policyholders. In fact, many insurance companies now have special arson fraud divisions dedicated to
investigating suspected arson.
To See How Much Money You Could Save On Your
Home / Auto / Business Insurance.
Get Your Free Insurance Quotes Today By Calling Jason Shroot
at 714-988-3325
