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The Case of the Burning Bed: Arson or Grounds to Subrogate?

This claim involves the occult, an earthquake and how an alleged arson turned out to be something else entirely.

By Barry Zalma | Updated on November 01, 2013

Editor’s Note: The story that follows is based on fact. The names, places and descriptions have been changed to protect the guilty. This story was written for the purpose of providing insurers, those in the insurance business, and the insurance buying public sufficient information to recognize and join in the fight against insurance fraud.

Sometimes what appears to be an obvious arson-for-profit case actually turns out to be an accidental fire. Our story begins with an insured living near the ocean in San Luis Obispo, California. Recently divorced, the homeowner lived alone for many months. The divorce had caused her much emotional trauma. After 25 years of marriage, the insured’s husband announced he could not live with her any longer and promptly moved out.

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