Does home insurance cover arson fires?

Does home insurance cover arson?

If you or someone in your household set the fire, the arson will not be covered by insurance because home insurance excludes intentional acts by the homeowner. Fire is a covered peril under standard homeowners policies, but policies exclude intentional losses caused by the insured.

There have been many instances of homeowners intentionally starting a fire on their property with the intent of collecting insurance money. This is a clear case of insurance fraud. This type of arson is illegal, and not only will your claim be denied, but you could face criminal prosecution.

This is generally what insurance companies consider to be arson, even though the term is used by most to describe any fire that is set on purpose.

If you intentionally burn your home to collect insurance money, the intentional-loss exclusion applies, and your insurer can deny the claim. If an unknown person breaks onto your property and intentionally starts the fire, the damage falls under vandalism coverage.

When does homeowners insurance cover an arson fire?

Homeowners insurance will cover arson only when a third party starts the fire, and even then, there is no guarantee that it will be covered. You will need to prove someone else started the fire. The insurer will investigate who caused the fire and whether any policy exclusion applies.

If it can be proven that the fire was intentionally started by someone other than you or someone who lives at your property, the damages may be covered by your policy. This is because the loss would be considered to have happened via an act of vandalism and not arson, which is covered by homeowners insurance.

What role do insurance companies play in arson cases?

Insurance companies investigate every claim, and fire claims will involve careful investigation of the cause. The insurance adjuster assigned by your insurance company will review all the evidence and determine whether the coverage afforded by your policy applies to the damage.

The local fire and police departments will also start an investigation to determine what caused the blaze. The results of the investigation will determine whether or not you will be covered.

Cooperate with the insurer’s investigation and provide the requested documents and information. Do not remove or repair damaged property beyond what is necessary to prevent further damage until your insurer gives you instructions, unless emergency action is needed for safety.

Why is arson not covered by insurance?

Home insurance doesn’t cover any type of intentional damage, and insurance companies generally define arson as a fire set by the homeowner intentionally, usually with the goal of collecting insurance money. This excludes it from coverage.

That does not mean all intentionally set fires are excluded. If another person intentionally sets fire to your home, the loss will be covered under the vandalism portion of your homeowners policy.

What do you do if someone sets your house on fire?

In any fire situation, the first step is to make sure everyone is out of the house and safe. If the blaze is small enough, use a fire extinguisher to put it out. However, don’t risk your safety trying to put out a fire; call the fire department right away.

If you suspect the fire was set on purpose by someone, file a police report immediately and file a claim with your insurance company. The police and fire department will investigate the cause of the fire and gather any evidence that may lead to an arrest.

If you think you know who set the fire, provide any evidence that supports your belief to the police.

Your insurance company will also investigate. Any time you believe a crime has been committed, a police report will be required in order for your claim to proceed. Cooperate with both the police and the adjuster throughout the investigation.

FAQ: Home insurance for arson

How does an insurance company determine if a fire was arson?

The insurer investigates how the fire started and who caused it. The fire department and police may also investigate and provide evidence about the cause.

Can you file a homeowners insurance claim after an arson fire?

Yes. Contact your insurance company as soon as possible after the fire and follow its claims process. The insurer will investigate before deciding if the damage is covered.

What happens if you are suspected of starting a house fire?

Your insurer can deny the claim if evidence shows you intentionally caused the fire. You could also face criminal charges if authorities determine that you committed arson or insurance fraud.