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Will Subprime Spark an Arson Boom

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The Dog

Thread Starter
Senior Member
Joined
Apr 18, 2005
Professional Status
Certified General Appraiser
State
Oregon
Read an article in the latest FORTUNE magazine that stated that the Coalition Against Insurance Fraud is warning about a possible spike in fraud arson in to be foreclosed properties.

Allstate all ready is reporting an increase, while the California State Insurance Division reports a 76% increase in questionable residential fires.

Apparently a number of "owners" would rather collect insurance money than let the bank have whatever they can get out of the property.

Now we know what the COST APPROACH is used for. Hope that it was accurate and will cover the replacement cost, otherwise, we might see an increase in malpractice law suits as well.
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
There will be a spike in fires.This is called a "Friction Fire" in the insurance business.This happens when the economy turns down.The best time to view your favorite fire is when the commercial Real Estate tanks , it's Katy bar the door as somehow all those full warehouses burn to the ground..Quick , buy some beans and ammo..
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Overheard while waiting in line...."don't get me started about
insurance, tree smashed through my house, but the insurance
company says they'll pay $5K when the actual costs are $35K."

Insurance companies are bas#ards. They probably get what
they deserve....it just increases their rate base and we all
end up paying.
 

Obsolescent

Senior Member
Joined
Jul 6, 2004
Professional Status
Certified Residential Appraiser
State
Minnesota
There will be a spike in fires.This is called a "Friction Fire" in the insurance business.This happens when the economy turns down.The best time to view your favorite fire is when the commercial Real Estate tanks , it's Katy bar the door as somehow all those full warehouses burn to the ground..Quick , buy some beans and ammo..

Yes the friction is caused from the insurance papers rubbing against the payment book. I read an article that said Florida had an increase in home fires this past year.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I have done some forensic work for insurance companies on houses that burned down. Most interesting case was one that burned 2X. First fire wasn't enough to total it, the 2nd one was, and it occurred after the electrical wires serving the house had been removed, along with the LP gas tank.:unsure: It was a builders house, he was headed into bankruptcy. The basement walls were failing, because it wasn't built correctly to begin with. Things that make you go hmm????:Eyecrazy:
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
May want to note how many Insurance Companies are not doing Residential Insurance. Remember everyone wants to pay LOW insurtance Premiums until they need the Insurance, May want to check your Insurance Policy. After a certain amount of time Vacant your insurance MAY NOT cover you.
 
Joined
Jul 15, 2003
Professional Status
Certified Residential Appraiser
State
Connecticut
I have been seeing a increase of house fires in my area over the last year, my brother is a fireman and my dad was one too. Bridgeport has always been know as a fire town/city, but my home town of fairfield has increased 10 fold. They would have a house fire maybe once every quarter, with most of them would be from a kitchen fire. But lately I been hearing about house fires almost every week or so. I was talking to my brother over the holidays and he could not firgure out why so many fires, I told him most likely because of forecloses are increaseing and he stated yeah we been seeing increaseing arson cases. Plus I have seen a increase of suicides in the area too, but don't know if it is just from the holidays.
 
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