Odd thought, fires in Detroit

**sumas** · September-23-13, 08:56 PM

Homes get auctioned for next to nothing. Occurred to me that people are buying these homes, insuring them and pay to have them torched. Easy money, its Detroit. no fix up, no bother with rentals. Just a new scam. Sigh again! We count fire sirens daily, it's almost on the hour. Just more people raping the city and claiming criminal elements, bull shit! Opportunists risking our firefighter's lives. So sucks!

**rex** · September-23-13, 08:57 PM

pretty sure its not a new scam though.

**313WX** · September-23-13, 09:11 PM

Originally Posted by rex

pretty sure its not a new scam though.

Hardly a new scam. In fact, it's a well-known scam [[chiefly associated with Detroit) that's been around since the 1970s.

http://en.wikipedia.org/wiki/Devil's_Night

**DetroitPlanner** · September-23-13, 10:26 PM

one problem, it is hard and expensive to get an unsecured home insured. most houses that sell for next to nothing are worth nothing. An insurance company is not going to pay you $100,000 if all the other homes on the block are worth what you paid for yours.

**ScienceFair** · September-24-13, 08:38 AM

Originally Posted by DetroitPlanner

one problem, it is hard and expensive to get an unsecured home insured. most houses that sell for next to nothing are worth nothing. An insurance company is not going to pay you $100,000 if all the other homes on the block are worth what you paid for yours.

Exactly. I had a friend who couldn't get any insurance on his home in IV because of this. Huge headache for the people trying to do it the right way.

**SWMAP** · September-24-13, 08:48 AM

Planner is right - if that was ever a scam, it was hard to do. No insurance is possible on unoccupied home. Can maybe get "construction insurance if can prove house is being rehabbed - but it is hard, expensive and paid up front.

You can also be holding a lot of insurance - someone mentioned a half-million insured, but getting that much money if your house burns and is assessed at $50,000 and comparables are at $35,000 will be very, very hard. You will fight for years.

**Goose** · September-24-13, 12:07 PM

not happening... insurance on a secured occupiable vacant home is near impossible, make it a run down dump it won't happen

they send someone out to look at the home first from the street most time when you get insurance

**pgn421** · September-24-13, 12:27 PM

Same thing with bank owned properties, that go into foreclosure. They have insurance on abandoned properties

**BillyBBrew** · September-25-13, 08:19 PM

Very cost prohibitive and difficult to insure houses in Detroit. If the house needs any type of work at all, the insurer won't touch it. I've known people with non-leaking older roofs who had insurance with the same company for years that had to replace them because the insurance company wouldn't continue to insure if they didn't. I also experienced this myself in the past. Had to replace the roof to change insurance to State Farm.Opted not to switch because it wasn't leaking. I doubt people are insuring houses and burning them for cash in Detroit. Makes no sense.

**sumas** · September-25-13, 09:40 PM

No doubt you're right. I post a lot in the middle of the night since I have insomnia. I really do have my house insured for a small fortune at a very
reasonable rate. No clue how or why. My old home is in great shape. Need to paint a bit of trim, garage needs painting and a new roof. All will be done this fall, early spring.