Fire claims are intimidating, complex, anddownright incindiary—especially when arson is a potentialconclusion. The U.S. Fire Administration estimates that one inevery 10 fires in theU.S.is set deliberately. The National FireProtection Association (NFPA) reports that at least 26,500structures and 14,000 vehicles were intentionally set on fire in2011 (the most recent year for which data is available).

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

In light of these challenges and in the face of wildfires andplant explosions, how can adjusters and other claimsprofessionals ensure their investigations are thorough, accurate,and defensible in court? Let's begin with heeding lessons from arecent arson case and the warning signs displayed on the nextpage.