Arson is no solution

North America

With the news that California recorded 481,392 notices of default on mortgage repayments in 2007, the local offices of the Insurance Information Network (IIN) and the National Insurance Crime Bureau (NICB) have issued a joint warning to financially stressed homeowners of the consequences of setting fire to their homes in order to collect from their insurance. The IIN and NICB are adamant that while foreclosures have skyrocketed, potential foreclosure-related arsons have not followed suit. Candysse Miller, executive director of the IIN in California, said that only 14 arsons potentially related to foreclosure were reported in 2007. The joint statement stressed that conviction of insurance fraud or arson could result in up to five years in jail and penalty fees up to $50,000. The penalty for arson could result in jail time from five to 20 years.