COLLECTING INSURANCE REIMBURSEMENTS
Private Crime Insurance
Private insurance companies are innocent third par- ties that can quickly and routinely provide reim- bursement for losses. The positive aspect is that a prudent policyholder can be repaid without too many complications as long as a formal complaint is filed with the police. The drawbacks are that a potential target must have the foresight to purchase protection in advance, a company must be willing to issue a policy (some people and businesses in high-crime areas have trouble finding an insurer), premiums for the coverage must be affordable (many people are aware of life’s dangers but do not have the disposable income to pay for the
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“luxury” of insurance), and exclusions of relatively minor losses (because of deductible clauses) impose serious financial hardships on low-income families (Sarnoff, 1996).
Cautious individuals can protect themselves against a variety of hazards (see Miller, Cohen, and Wiersema, 1996). Life insurance policies can pay sizable sums to the survivors of loved ones who were murdered. Some policies (which cost more) contain a double indemnity clause that grants survivors twice as much if the policyholder dies unexpectedly from an accident or a criminally inflicted injury. Coverage can also be purchased to offset lost earnings (income maintenance) and expenses due to medical bills (health insurance). Property can be insured against loss or damage. Car and boat insurance covers expenses imposed by theft, vandalism, and arson. Home insurance protects against losses due to burglary, some larce- nies (items left on porches or in yards, for example),
vandalism, arson, and robbery if the confrontation occurs within the dwelling. Some companies sell robbery insurance that reimburses policyholders for lost valuables such as jewelry or cameras no matter where the crime occurs. A few companies offer protection to businesses whose executives might be kidnapped and held for ransom.
In order for burglary victims to collect reim- bursements under homeowner policies, documen- tation requirements, deductibles, exclusions, limits, depreciation of value due to age and wear, plus optional rider clauses (for example, to cover the theft of very expensive jewelry) make complete recovery unlikely (Weisberg, 2008). If detectives determine that the intruder committed a theft due to a victim-facilitated “no force entry” (see Chapter 5), a careless policyholder’s claim could be reduced or rejected (Reeves, 2006). Obstacles to collecting insurance reimbursement like these are listed in Box 12.1.