A Video Explaining Arson for Profit and Other Property Insurance Frauds

Types of First Party Property Fraud

See the full video at https://rumble.com/vepget-a-video-explaining-arson-for-profit-and-other-property-insurance-frauds.html and at https://youtu.be/t2SeWXXkNcA

Every first-party property adjuster will face in his or her career attempts to defraud the insurer for whom the adjuster works. It is necessary that the adjuster is aware of each type of property insurance fraud he or she may encounter. Some, but surely not all, fraud types follow:


Arson is the intentional burning of property. It no longer is limited to specific types of property. Although perhaps the most dangerous of all methods of insurance fraud, people continue to attempt insurance fraud by burning their homes, vehicles, and business structures.

If an insured sets fire to his furniture or car to defraud the insurer, the defense available to the insurer is fraud not arson. To defend a claim based upon fraud by arson, the insurer must prove the following:

  1. The property was insured under a contract of insurance.
  2. The contract of insurance contained a provision allowing the insurer to void insurance because of misrepresentation, concealment, false swearing, fraud, or an exclusion for intentional acts of the insured similar to that in the New York Standard Fire Insurance Policy.
  3. The fire was not accidental.
  4. The fire was caused by the acts of a person or persons.
  5. The fire was set by the insured or someone acting for the insured.
  6. The fire was set for the purpose of defrauding the insurer.

Staged Thefts

Staged Water Damage or Mold Claims

Multiple Other Property Fraud Claims

© 2021 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and zalma@zalma.com.

Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.

Over the last 53 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.

Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma;  Follow Mr. Zalma on Twitter at https://twitter.com/bzalma; Go to Barry Zalma videos at Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/ Read posts from Barry Zalma at https://parler.com/profile/Zalma/posts; and Read last two issues of ZIFL here.


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