I hope you are trolling me. If so, bravo. If not you are living in a bubble and your ability to reason is affected by the methane from your stinky farts that are trapped by said bubble.
So the statistics are from the FBI uniform crime report, which as you stated is derived from police reports. This is because the criminals do not self report.... Even if they're was better data available, your argument doesn't hold water. If insurance fraud is an unrecognized flaw in the data, it would apply to all cities. Unless you can explain why it would happen in Flowood only.
So what I see is a city (Flowood) that is extremely low in violent crime. But high in property crimes. Thats okay. It could be the other way around. This would suggest if you can't justify a few hundred dollars for the home alarm, the residents should sell the concealed carry weapon that is extremely unlikely to ever shoot anyone other than themselves, and buy a home alarm.
Even in a small city, there is going to be wide variation based on area that aren't picked up by city-wide statistics. Plus, the virtually universal tendency is for people to overestimate how likely they are to be a victim of crime, because memories of crimes in their neighborhood tend to be relatively vivid and standout amongst all the time that nothing happened.
If somebody tells me they don't need to lock their door, I tend to believe them.
Somewhat OT, I once left town for a three day weekend with my front door open. Not unlocked, but wide open. Friend grabbed something from the house after I left and she didn't realize you have to pull the front door all the way shut. Door came back open and stood wide open for three days. As far as I can tell, nobody went in nor bothered to check why a door was wide open for several days. This wasn't a particularly nice neighborhood, probably right at middle class, but real middle class in Mississippi, as in household incomes generally in the $40k's-$60k's, but also probably a decent number of single parent households. Plenty of vehicular and foot traffic. Surprised the hell out of me that we didn't at least have teenage idiots go in and cause trouble. Not really here nor there except to point out that while crime happens, for a lot of neighborhoods, even when you're asking for it, it's not about to happen at any time.