This post appears as part of Goldstein Law Group’s blog series for International Fraud Awareness Week (November 16-22). This week, GLG attorneys address five types of insurance fraud the firm encounters on a regular basis.
Foreclosures, mortgages, loans and debt. All of these matters are sources of great concern for home and business owners. In some cases, they also serve as a motive to commit arson insurance fraud, the topic of today’s discussion in our International Fraud Awareness Week series.
Arson insurance fraud, also referred to as arson for profit, involves individuals intentionally setting fire to their property so they can collect insurance money. As you can imagine, this crime can be appealing to someone who is facing hard financial times and desperate to make ends meet. However, the unpredictable nature of fires can lead to even greater losses, including burning adjacent properties and, in the most tragic of cases, death.
It is estimated that about 14 percent of arson cases are insurance-motivated according to the Insurance Research Council. The National Fire Protection Association also states that, between 2007-2011, U.S. fire departments reported an estimated 282,600 intentionally set fires each year, with associated annual losses of 420 civilian deaths, 1,360 injuries and $1.3 billion in direct property damage.
These astounding statistics are Goldstein Law Group’s motivation in our fight to eliminate insurance fraud, and also why law enforcement and insurance companies alike have an interest in thoroughly investigating the cause and origin of fires. Additionally, arson cases are one of the many reasons why life, property and home insurance premiums are so high, demonstrating why insurance fraud is not a victimless crime.
In response to this problem, many insurance companies now have special arson fraud divisions dedicated to investigating suspected arson, a task that can be quite difficult because most evidence is destroyed by the fire itself. However, there are still plenty of investigative techniques that will reveal clues about the fire and its creator.
If someone you know benefits financially from a fire that affected their home or business, contact local law enforcement.
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