Fire! Why Arson-for-Profit is Dangerous

Read the full article at https://lnkd.in/gu7GS9cr and see the full video at https://lnkd.in/gPEKpb7D and at https://lnkd.in/gpRbp_u4 and at https://zalma.com/blog plus more than 4200 posts.

The crime of arson is violent. Not only is property damaged, people die. Most arson fires are set for spite, anger, vengeance or spousal abuse. Approximately 25 per cent are set to defraud insurers. Fires set to defraud an insurer are called, by arson investigators, “arson for profit.”Because most perpetrators do not understand uncontrolled fires, they believe arson is simple and risk free. The nascent arsonist believes all the evidence that might tie him to the crime will be consumed by the fire. He or she is mistaken.

Ben Standish was an arsonist who might have tried a less violent crime if he knew more about fire. Had he known that evidence will remain after the fire is extinguished by the fire fighters his house would not be a charred hulk. Had he known that it is difficult to avoid injury he would have filed a personal bankruptcy rather than use arson as a method to get out of debt.

Ben Standish was upside down on his mortgage and a balloon payment was due. He could not find a lender willing to lend him enough to cover the balloon payment which was $100,000 more than the fair market value of the house. He was desperate.

Ben decided that his only solution was to burn down his house and sell it to his insurance company. An honest man, faced with the shame of bankruptcy, decided that defrauding an insurance company was not criminal. He had paid them premiums for 10 years with no claims. They owed him. Unfortunately the fire exploded and he was burned on his hands and face and when he met the arson investigator who saw the burs he was faced with: “Mr. Standish, you are under arrest. I must inform you that you have the right to remain silent and refuse to answer any questions I pose to you; you have the right to have a lawyer present while I question you. Do you want to waive the rights I have just explained to you?”

“You’re kidding. You mean if he goes to jail, he still succeeds in getting out of the debt?”

“Yes. And you thought crime doesn’t pay.”

“Orson, I’ll never say anything bad about my insurance company again.”

ZALMA OPINON

Arson is the least effective and most dangerous method to defraud an insurer. Even a hot-burning gasoline fed arson for profit leaves physical evidence. A fire will seldom destroy everything and like Standish the arsonist is often burned.

(c) 2022 Barry Zalma & ClaimSchool, Inc.

Barry Zalma, Esq., CFE, is available at http://www.zalma.com and [email protected].

Subscribe to Zalma on Insurance at locals.com https://zalmaoninsurance.local.com/subscribe.

Subscribe to Excellence in Claims Handling at https://barryzalma.substack.com/welcome.