Some key facts about insurance and arson:

When arson is committed by a third-party — not the insured or anyone covered by the policy — the damage is generally covered under homeowners insurance, commercial property insurance and comprehensive auto coverage.
Insurers treat third-party arson as a criminal act, similar to vandalism. They’ll usually conduct an investigation to make sure the fire was not set or planned by the policyholder. That investigation can include investigators or forensic experts and sometimes the local fire department. They’ll usually review financial records or motives and interview any witnesses.
If a policyholder or anyone covered by the policy set the fire intentionally, then the claim will be denied, and the insurer can pursue criminal charges or investigate the case as insurance fraud.
If a policyholder or someone else sets a fire on accident, any damage is covered by insurance.

There have been several high-profile arson fraud cases over the years. In Texas in the 1980s, a furniture store owner repeatedly set his own stores on fire to collect payouts, until investigators noticed identical burn patterns and that the owner had over-insured his stock. Detroit has a long-standing issue with car owners burning their own vehicles — a “car-b-que” — to avoid loan payments or collect on insurance.

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