Water damaged wood flooring in a home. Claims professionals also should look for certain red flags that may indicate what the insurance industry refers to as "soft fraud." Photo: Leonard/Adobe Stock

Insurance fraud, like other crimes, continues to evolve as fraudsters become more creative. Arson, the crime of intentionally and illegally setting fire to a building or other structure, has long worsened claims activity for property insurers. Today, in many ways, water is the new fire.

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