The prime objective of property insurance fraud is to obtain more money than the item would be worth if sold legitimately. But this kind of fraud can become complex.
In the case of buildings and plant equipment, arson is often involved. Goods that are unsaleable due to their poor condition, quality or lack of market demand, might also be 'lost' or 'destroyed'. In the case of unsaleable goods, the person perpetrating the fraud, along with any co-conspirators, avoids the consequences of bad merchandise choices by dishonestly causing the insurer to pay the bill. Insurers then recoup their costs by raising premiums - and this is when honest policyholders pay the price.
Property insurance fraudsters often get away with their crimes by seemingly being part of the legitimate business world and portraying themselves as 'victims of circumstance'.
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!