Was Wondering - Is Home Arson on the rise?

[ThomWV]

Seems to me that if a person's mortgage payment was going to bankrupt them and that if the house had homeowner's insurance - as all mortgaged homes do - that really desperate 'home owners' would be torching their McMansions left and right just to get out from under the debt.

Anyone seen any numbers?

[Donnachaidh]

1. We're seeing more fires lately

But it could be desperate homeowners like you reference OR idiots who don't know how to deal with fireplace ashes properly.

Time will tell. :shrug:

[peace13]

2. Sometimes a water pipe breaks

and no fire is required. Peace, Kim

[flashl]

3. Yes ...

Insurers of Foreclosed Homes Brace For Arson Epidemic

The real estate market could be going up in smoke – literally.

Insurance fraud investigators are bracing for an epidemic of arsons as desperate borrowers torch their homes for insurance money.

Recent arson incidents could be the start of an alarming trend. A Houston man allegedly burned down his home for insurance money to dodge foreclosure, the fraud group reports.

Authorities became suspicious, in part, because the house was virtually empty of furniture and appliances and the power had been shut off. The insurer paid off the mortgage and gave the owner $10,000 in equity but is now is trying to recoup its money.

[skepticscott]

4. The problem is

that a person's (or a business's) finances are one of the first things that an arson investigator looks at. If someone is behind on their mortgage payments and all of a sudden their house burns down in a "mysterious" fire, that's an automatic red flag. Plus, most people in that situation aren't going to be too clever about making a fire look accidental, and they'll do dumb things like taking some of their most important personal possessions (jewelry, art, documents, photos, etc) out of the house before the fire...another dead giveaway.

[KansDem]

5. I believe my home owner's insurance policy states I have to rebuild...

I can't simply take the money and run, I have to use that money to rebuild on the same location. I'd still have mortgage payments. But, perhaps policies differ.

I'd better re-read my policy again (not that I need to--just to refresh my memory).

[ordinaryaveragegirl]

6. Deferred maintenance happens a lot more...

They can't afford the mortgage, and can't afford the upkeep. Or they might hire a cheaper, non-licensed contractor who does less-than-code upgrades on a house. So something goes on the fritz. This went on quite a bit in Chicago, surprisingly - there were lots of fires up there.