Arson Investigation & Insurance Fraud

Was the fire accidental or was it arson? There are many warning signals of arson that an adjuster can identify at his/her desk when the loss is reported. There are other signs at the scene that can be discovered to determine whether or not further investigation is warranted.

Even if a fire is determined to be arson there are often many avenues of subrogation. When FFI is conducting the investigation, even in cases of arson, the client can expect all subrogation avenues to be fully investigated and documented.

In Australia arson accounts for millions of dollars in property losses each year to the public and private sectors, as well as to the insurance industry. In order to be a viable business, the insurance company must pass on the cost of arson to its policy holders. Some estimate that arson and fraud account for almost 25 percent of the premium dollar.

Similar to burglary and theft, arson is also a crime of stealth. The perpetrator of arson does not want to be seen committing his cowardly act. Most arson fires, therefore, occur at night and normally when no one is in the structure. Arson-for-profit is usually planned well ahead and the insured usually has a solid alibi far from the scene.

If there are indicators that the fire did not occur as reported, then an independent fire expert should be assigned to conduct the scene examination. If the fire is determined to be arson by the local officials or by an independent fire expert, FFI recommends letting the investigator do a complete and thorough follow-up investigation. The scene will often link the crime of arson to the perpetrator.

If separate investigators are used, one for the scene and the other for the follow-up, there may be many pieces of valuable information that go undetected simply because the follow-up investigator was not familiar enough about the acts of the crime to identify the information as important.