Actually. This would be considered hard fraud, which is almost always a felony. Soft fraud is a misdemeanor.
- Soft fraud occurs when a person exaggerates an existing claim, such as overstating the damages caused by a car accident. Soft fraud is usually considered a misdemeanor, punishable by fines, jail time of up to one year, community service, and probation.
- Hard fraud, on the other hand, occurs when a person either causes or fabricates a loss for the deliberate purpose of obtaining insurance payments. Hard fraud is almost considered a felony, punishable by strict penalties including the possibility of incarceration in state prison for a number of years.
http://www.criminaldefenselawyer.com/crime-penalties/federal/Insurance-Fraud.htm
Buying insurance and making a claim on something that was broken before the insurance was aquired would fall under hard fraud. The amount isn't really that important. It's the way something occurred. Now theft vs grand larceny, yes that's when amounts matter.
Now I will agree with your point that it wouldn't be heard unless making an example of, but this is what law school has taught me.