Is Arson Covered by Insurance?

Does Home Insurance Cover Arson?

• Policyholder Arson: Insurance won't cover fires set intentionally by the policyholder. Arson is illegal, and claims made under such circumstances are considered fraudulent.
• Third-Party Arson: If someone else sets your home on fire, your insurance may cover the damages. This is because the act wasn't committed by you or a household member.

Why Doesn't Home Insurance Cover Arson?

• Intentional Acts Exclusion: Policies exclude coverage for intentional acts like arson by the policyholder.
• Fraud and Misrepresentation: Filing a claim for a fire you set is fraud. Insurance companies can deny such claims and may cancel your policy.
• Criminal Activity: Arson is a crime, and insurance doesn't cover losses from illegal actions.
• Policy Conditions: You must meet certain conditions, like maintaining smoke detectors, to receive coverage. Failing to do so can lead to denial.

What Happens if Someone Sets Your House on Fire?

1. Ensure Safety: Evacuate immediately and call emergency services.
2. Cooperate with Authorities: Provide information to law enforcement and fire investigators.
3. Contact Your Insurance Company: Report the fire and provide details, including the police report.
4. Document the Damage: Take photos and note the extent of the damage.
5. Seek Temporary Shelter: Your policy may cover additional living expenses if your home is uninhabitable.
6. Cooperate with the Insurance Investigation: Provide requested information to your insurer.
7. Review Your Insurance Policy: Understand your coverage and any deductibles.
8. Legal Action: The arsonist may face criminal charges, and you might pursue civil litigation for uncovered damages.

What Role Do Insurance Companies Play in Arson Cases?

• Claims Investigation: Insurers investigate the cause of the fire, working with authorities if arson is suspected.
• Determining Coverage: They assess your policy to determine coverage for fire-related damages.
• Evaluating Losses: Insurers estimate repair costs and additional living expenses.
• Claims Adjustment: Adjusters work with you to settle the claim.
• Preventing Fraud: Insurers have anti-fraud units to detect fraudulent claims.
• Legal Action: They may deny claims or void policies if fraud is confirmed.
• Subrogation: Insurers can seek reimbursement from the arsonist if they pay a claim.
• Cooperation with Authorities: Insurers assist law enforcement in building cases against arsonists.

What Does Fire Insurance Cover on a Home?

• Fire Damage: Covers structural damage and attached structures.
• Smoke and Soot Damage: Includes cleaning and restoration.
• Fire Department Charges: Covers costs for fire department services.
• Loss of Personal Property: Protects belongings like furniture and electronics.
• Additional Living Expenses (ALE): Covers temporary housing if your home is uninhabitable.
• Detached Structures: Covers sheds, fences, and garages.
• Fire Extinguisher Recharge: Some policies cover recharging costs.

What Are Three Things Not Covered by Homeowners Insurance?

1. Flood Damage: Requires separate flood insurance. FEMA provides more details.
2. Earthquake Damage: Needs a separate earthquake policy.
3. Intentional Acts and Criminal Activities: Excludes damages from illegal activities by the homeowner.

Why Would an Insurance Company Deny a Fire Claim?

• Policy Exclusions: Certain causes of fire may not be covered.
• Failure to Pay Premiums: Non-payment can lead to denial.
• Misrepresentation or Fraud: False claims result in denial.
• Lapse in Coverage: Coverage must be active at the time of the incident.
• Failure to Meet Policy Conditions: Not adhering to policy terms can lead to denial.
• Uncovered Causes of Fire: Some fires may not be covered.
• Exceeding Coverage Limits: Claims above policy limits are denied.
• Preexisting Damage: Damage existing before the fire isn't covered.
• Inadequate Documentation: Lack of evidence can result in denial.

For more information on insurance coverage, visit Insurance Information Institute.