Legal Definitions - arson with intent to defraud an insurer

Arson with intent to defraud an insurer refers to the criminal act of deliberately setting fire to one's own property, or property in which one has a financial interest, with the specific goal of illegally collecting insurance money for the resulting damage. This offense is distinct from general arson because it specifically targets the deception of an insurance company for financial gain. Individuals found guilty face not only criminal penalties but also the forfeiture of any insurance payout for the damage caused by the fire.

Here are some examples to illustrate this concept:

• Example 1: The Struggling Restaurant Owner

  A restaurant owner, facing declining profits and mounting debt, decides to intentionally set fire to their establishment late one night. They then file a claim with their property insurance company, hoping to receive a large payout that would cover their financial losses and allow them to escape their business obligations. The subsequent investigation reveals evidence of accelerants and a carefully planned ignition, pointing away from an accidental fire.

  This illustrates arson with intent to defraud an insurer because the owner deliberately caused the fire to their property (the restaurant) with the specific purpose of deceiving their insurance company into paying out a claim for damages that were intentionally caused, thereby defrauding the insurer for financial gain.

• Example 2: The Unwanted Rental Property

  A landlord owns an old apartment building that has been vacant for months, requiring extensive and costly repairs to make it habitable again. Unable to find tenants or sell the property, the landlord intentionally starts a fire in the building's basement, hoping the damage will be severe enough for their insurance policy to declare it a total loss. They then submit a claim for the full insured value of the property.

  Here, the landlord intentionally set fire to their property (the apartment building) not out of malice, but with the clear intent to defraud their insurer. Their goal was to trigger an insurance payout by creating a false claim of accidental damage, thereby gaining financially from the destruction of an undesirable and unprofitable asset.

• Example 3: The Financially Burdensome Vehicle

  A person owns an expensive sports car that has suffered a catastrophic engine failure, requiring repairs that would cost significantly more than the car's current market value. Unable to afford the repairs or sell the car for a reasonable price, they drive it to a remote location, douse it with gasoline, and set it ablaze. They then report the car stolen and burned to their insurance company, expecting a full payout for the vehicle's value.

  This scenario demonstrates arson with intent to defraud an insurer because the car owner deliberately destroyed their own property (the car) by fire. Their motivation was to defraud the insurance company by falsely claiming an accidental or criminal loss (theft and fire) to receive an insurance settlement they would not be entitled to for a mechanical breakdown or an intentional act of destruction.