Does Home Insurance Cover Arson? What to Know

In Louisiana, fire damage claims are sometimes denied over accusations of arson. Insurance usually does not cover fires due to arson. It’s a policy exclusion that some insurers try to abuse.

Insurance companies may falsely accuse someone of a criminal act since arson usually isn’t covered by insurance. It’s rare, but an accusation may happen to you.

Get in touch with a fire damage claim attorney if you have a valid claim about an accidental fire and need to fight the insurance company for money. Our lawyers help people in New Orleans and Louisiana whose homes have been burned down if their insurance company says that arson doesn’t cover their losses.

Experiencing a fire in your home can be devastating, both emotionally and financially. Home insurance provides important financial protection if a fire damages your property. However, most policies have exclusions for damage caused by intentional acts. So does homeowners insurance cover arson if you or someone else purposely sets your house ablaze?

Unfortunately, the answer is generally no. Insurance companies will investigate the cause of any fire loss, and arson is one of the most common reasons claims are denied. Keep reading to learn more about how arson affects your homeowners insurance coverage and what to do if your home is impacted by an intentionally set fire.

Overview of Home Insurance Fire Coverage

Before diving into the specifics of arson, it helps to understand what a standard homeowners policy covers for fire damage. Home insurance provides protection for a wide range of fire-related losses

  • House fire from electrical faults, appliance malfunctions, lightning strikes, and more
  • Wildfires that spread to your home
  • Smoke damage from any covered fire
  • Water damage when firefighters extinguish flames
  • Explosion damage if a fire causes a blast
  • Damage to other structures like garages and sheds

Additionally, many policies cover hotel costs if your home is uninhabitable after a fire, debris removal, building code upgrades in some cases, and liability if someone is injured on your property.

So in general, home insurance does cover damage caused by accidental fires as well as fires intentionally set by someone other than the policyholder or household member. But what happens if the fire is ruled arson?

How Arson Affects Home Insurance Claims

Arson is considered an intentional act, and home insurance policies explicitly exclude damage caused intentionally by the policyholder. So if you purposely set your house on fire, your insurance company will almost certainly deny a claim for any resulting damage.

Insurance fraud through arson is surprisingly common, often to collect insurance money from a dilapidated house, get out of an underwater mortgage, or profit from the rebuilding process. If arson is suspected, the insurer will conduct an investigation alongside the fire department.

Even if arson can’t be definitively proven, the mere suspicion of intentional burning may lead to a claim denial. Only clear evidence the fire was accidental or set by someone else will result in the insurer approving a payout.

Scenarios Where Arson Fire Damage Is Covered

While arson by a homeowner isn’t covered, there are some scenarios where your homeowners insurance would pay for fire damage from an intentionally set blaze:

  • Vandalism: If the fire was purposely started by a third party rather than the policyholder, insurance would classify it as vandalism. Home policies cover vandalism, including damage from fires maliciously started by others.

  • Faulty investigation: In rare cases, innocent homeowners are accused of arson based on circumstantial evidence. Competent legal representation can fight a wrongful denial by proving the fire wasn’t intentionally set.

  • Juvenile fire setting: If a child in the household starts a fire out of curiosity or delinquency, insurers may still cover the damage since minors can’t be found criminally guilty of arson.

  • Separate structures: Even if your house isn’t covered due to confirmed arson, your policy may still pay for fire damage to structures like detached garages, tool sheds, and fences caused by the same blaze.

The bottom line is that in almost all scenarios, arson by a homeowner will not be covered since it falls under the intentional acts exclusion. But if you can demonstrate the fire was accidental or caused by others, you still have a chance at recovering insurance benefits.

Tips for Handling an Arson Fire Claim

If you find yourself facing an arson investigation after a fire loss, here are some tips for managing the claims process:

  • Fully cooperate with the fire department’s arson inspection and your insurance company’s claims investigation. Refusing to provide information only raises suspicions.

  • Keep thorough records including photos and video of the fire damage, repair estimates, and any temporary lodging receipts. This evidence can help dispute an incorrect denial.

  • Hire an experienced attorney if the claim is denied due to suspected arson. Legal counsel understands the claims process and can build the strongest case to appeal the decision.

  • Remain calm under interrogation and when answering questions. Nervousness or contradictions can be red flags for investigators.

  • Proactively provide alibis, employment records, financial statements and other documentation. The more proof of innocence you offer, the harder it is to allege fraud.

While not a pleasant scenario, understanding the claims process and being prepared with evidence can help overturn a wrongful arson denial and get your home insurance benefits reinstated.

Preventing Fire Damage from Arson

Whether it’s arson, an accident or natural causes, a home fire can financially devastate an uninsured or underinsured homeowner. Here are some tips to protect against severe losses:

  • Install smoke detectors. Smoke alarms alert occupants to a fire early on when it may still be small enough to extinguish. Newer models even automatically notify the fire department.

  • Keep fire extinguishers accessible. ABC-type extinguishers can douse small stoove, electrical and other common fires before major burning occurs. Ensure they are checked and charged annually.

  • Create defensible space. Clearing vegetation and flammable materials away from your home’s perimeter improves resilience against spreading wildfires.

  • Upgrade to fire-resistant materials. Using metal roofing, stucco siding, and double-paned windows prevents ignition and contains fires.

  • Review insurance annually. Coverage limits that seemed sufficient a few years ago may no longer keep pace with rising rebuilding costs. Extended replacement cost riders provide a buffer.

While even the most prepared homeowners may fall victim to a devastating arson fire, implementing prudent precautions goes a long way toward preventing financial catastrophe in the aftermath.

No property owner ever expects to experience an intentionally set house fire. But understanding how arson affects insurance claims can help you navigate the process if the unthinkable occurs. With thorough documentation, expert legal guidance, and proactive prevention measures, recovering from a devastating blaze may be feasible.

The Difference Between Arson and Accidental Fires

Very few people actually try to set fire to their house, and it makes sense. People need somewhere to live.

Generally speaking, your insurance company is not going to assume that you committed arson. This is an important point. Sometimes a fire will be your fault, but it’s nothing intentional. The reality is that fires are caused by accidents, and accidents do happen. There are many things that can go wrong and cause a fire, just like there are many reasons someone would want to burn down their house on purpose.

Can Insurance Companies Deny Arson Claims?

Yes, the insurance company will try to refuse to pay you because they can refuse claims for arson. You might hear this referred to as the “arson clause” or “arson defense”. It’s one of the primary ways to deny a fire claim in Louisiana.

Insurance companies will look for a reason you might want to burn your house down. They may ask about your emotional state, your finances, and whether you previously filed for bankruptcy.

Does homeowner insurance cover accidental fires?

FAQ

Why is arson not covered by insurance?

If the available evidence points to intentional fire-setting, your claim may be rejected. Insurance typically doesn’t cover arson because it involves deliberately setting fires with the intent to cause damage or destruction.

What happens if someone else burns your house down?

If you suffered damages in a house fire due to someone else’s negligence, you may have legal recourse to hold them accountable. In a successful fire accident claim, you may recover medical expenses, lost wages, replace lost property, and other losses.

What role do insurance companies play in arson cases?

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 local fire and police departments will also start an investigation to determine what caused the blaze.

Does umbrella insurance cover arson?

Intentional or criminal acts: If you intentionally harm someone else or their property, or your actions are criminal, umbrella insurance will not cover those acts.

Does home insurance cover arson?

While most home insurance policies cover fire-related damage, fire damage that is due to arson is excluded from coverage. It is crucial to understand what arson is, why it is excluded, and how it may be determined to be the cause of a fire. Fire damage happens very frequently in the U.S.

Does home insurance cover a fire?

Coverage within a standard home insurance policy can compensate you after a fire, including dwelling, other structures, personal property, loss of use, and even liability coverage. What Is Fire Insurance and How Does It Work? Fire insurance is part of homeowners insurance and covers the cost of damages and losses caused by a fire.

Does fire insurance cover arson?

When you take out insurance on your home, car, office or any other property, you will most likely have fire insurance. One standard provision of fire insurance policies would be the exclusion of fires caused by arson. This means that when your property is damaged due to arson, you will not be entitled to collect any proceeds under your policy.

Do you need a homeowners policy if you have arson?

A homeowners policy is important to be economically protected from fire damage, but if the fire is the result of arson, not only is the home damaged or destroyed but now the economic reimbursement is gone as well. This leaves the homeowner to foot the bill for any sort of repairs or replacement. Find cheap rates from the best providers in your area

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