Where There’s Smoke, There’s Fire: Red Flags

Even when arson is established, it can be difficult to prove that an insured set a fire, as opposed to someone else. Since many arsonists work alone and at night, witnesses can be tough to find, while the fire involved in the crime itself also destroys much of the evidence. As a result, circumstantial evidence can be critical. Debt, divorce, and financial troubles like pending foreclosure, tax liens, and bankruptcy can provide insight into the crime and motive.

In light of these challenges and in the face of wildfires and plant explosions, how can adjusters and other claims professionals ensure their investigations are thorough, accurate, and defensible in court? Let’s begin with heeding lessons from a recent arson case and the warning signs displayed on the next page.