Arson is a fraudulent act where a person deliberately starts a fire to damage or destroy property. This can include residential homes, commercial buildings, vehicles, or other assets. A policyholder may commit arson by intentionally setting fire to the insured property.
Insurance companies take arson very seriously and investigate claims thoroughly to determine if the fire was intentional. If it is proven, the coverage may be denied, and the policyholder may face criminal charges.
Arson can cause significant damage to property, including:
Total destruction of buildings: Homes, businesses, and public structures can be completely destroyed.
Damage to surrounding property: Fires can spread and damage neighboring buildings or properties.
Environmental damage: Arson can harm forests, wildlife, and ecosystems.
At PSIC, our standard Homeowners, Renters, Condo, Mobile home, Landlord, Motorcycle, and Off-road vehicle insurance policies include protections against fire damage.
When we receive a report of an incident, we initiate an investigation to analyze how it originated and what material damage it caused, among other things. In the case of a fire, the key issue is to determine that it was not intentional, as a form of fraud against the insurance company.
As strange as it may seem, it is common for owners of personal or business properties to make this maneuver to receive money from the insurance companies. The main problem is that, as detailed in your PSIC policy, the coverage includes fires that are not the responsibility of the insured and, therefore, damages caused intentionally are not compensable.
Please, refer to your policy to find all the details and exclusions of coverage.
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Copyright © McGraw Insurance Services, L.P., Delaware L.P., 5515 E. La Palma Ave. Ste. 150, Anaheim, CA 92807, License 0K06900 / National Producer No. 17486061 The insurance policy, not the contents of this website, forms the contract between the insured and the insurance company. The policy may contain limits, exclusions and limitations that are not detailed on this website. Coverage may differ by state.
Privacy Notice at Collection for CA employees
Last updated: June 27, 2023
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