Saturday, Feb 16, 2008
After the mortgage fraud, the home insurance fraud
Fortune Magazine: Will subprime foreclosures spark an arson boom?
"As homeowners get more desperate, the insurance industry is bracing for an increase in arson. 31-year-old Christina Snyder of Russellville, Indiana, allegedly offered to pay a neighbor $5,000 to help her burn down her house and make it look like a botched rape attempt - all in order to claim $80,000 in insurance money. The neighbor demurred, instead reporting Snyder to police. With the national foreclosure rate zooming and the real estate market in a two-year funk, the insurance industry fears more homeowners will see arson as a way out of their financial woes. Fraud fighters are watching closely for a spike in arsons by desperate homeowners who can no longer afford their home payments. It may already be happening: In California, the number of questionable residential fires is up 76%."
2 Comments
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1. Gdbain said...
It will be worse in this country. If the firefighters turn up on time...they will be pelted by yobs.
2. Annac said...
Surely more of this fraudulent cases will come. That is, if the government won't take more action on this. Citizens just have to be extra careful. Here is an article of the greatest insurance scam in history. Add it up on your awareness. This is the reason why insurance providers have higher rates.