Insurance arson is the intentional burning of insured property in order to destroy it and claim its insured value, especially when this is greater than the item's saleable value.
The most common types of insurance fraud by arson involve suspicious fires described as 'accidental', which destroy:
Some people commit property arson to raise funds on buildings or goods that are difficult to sell, or if they are desperate for cash. Their motive is to realise more money that the items are worth on the legitimate market. Fraudulent claims are also made for non-existent property, falsely insured.
Motor vehicle arson follows the same principle. Dishonest motorists commonly set fire to vehicles that are in poor condition, too difficult to sell for the price they want or to benefit from over-insurance when this has been allowed to occur.
The associated risks of physical injury in arson-related activities are also very serious — to the community, firefighters and police. There's also implications for the environment.
As with all insurance fraud, the pocket it ultimately hits is yours.
If you have information that you believe in good faith is insurance fraud, report it NOW!