The Hot Issue Of Fire Insurance FraudWhen an arson investigator is called to the scene of a fire it's almost a sure indication that there is some suspicion that the fire was deliberately set. Fire insurance fraud is the most cause of most arson fires and for quick thinking investigators a big part of determining what happened involves the person who owns the building. Arson insurance fraud may seem difficult to prove but it's actually not as hard as it first seems.
Whenever someone takes out a policy for commercial insurance or residential insurance there is almost always some coverage related to fires. Fires are an unwelcome fact of life and in the case of an accidental fire, the property owner is entitled to make a claim so they can rebuild their home or business. Many dishonest individuals scheme to take these proceeds from the insurance company by initiating an arson insurance fraud scheme. One of the first clues that a fire has been deliberately set lies in how it occurred. In almost every case of fire insurance fraud the arson investigator is able to determine how the fire was set. This sets into motion an investigation to prove that fire insurance fraud is indeed taking place. When someone puts forth the idea to participate in this type of fraudulent activity they usually insure their property for a sizable amount of money. Although the building itself can only be insured for the amount that it is currently worth, the contents can be insured for almost any amount. Homeowners who are planning on committing fire insurance fraud will often take out an insurance policy that includes a large amount for their belongings. After a fire has occurred they try to claim for the maximum of those benefits. Unless the fire has been deemed arson and the cause isn't easy to determine, the insurance company may actually have to pay full benefits. Many business owners who are facing hardship will resort to this type of illegal activity as well. In this case the business owner takes out a policy that protects his premises from fire and then either sets the building ablaze him or herself or hires a professional to do it. The fire will obviously be investigated and the business owner will place a claim for damages with their insurance company. If the fire is determined to be arson, the business owner may have to wait to collect proceeds until the case has been solved. If no resolution is found after several years, the person who is the beneficiary of the commercial insurance policy can sue for the proceeds. Although many people decide to take part in this type of insurance fraud they are almost always intelligent enough to ensure they have a concrete alibi. This helps them during the investigation and can bode well when it comes time for them to fight for the proceeds of their fire insurance policy. Criminals that take part in this are obviously incredibly bold. |