Arson: A Costly Crime

US arson facts

• Arson—the act of deliberately setting fire to property for fraudulent or malicious purposes—is a crime in all states.
• Arsonists destroyed $1.5 billion in insured property, including buildings and motor vehicles, in 2000.
• Vandalism is the leading cause of arson.
• Between 20–25% of arson fires are drug-related.
• Children under age 18 are responsible for almost half of the arson fires set in the US.
• Arson crimes are hard to solve—the FBI estimates that only 17% of 2000 arson cases ended in arrests.
• Motives for arson usually include direct and indirect financial gain, revenge, concealment of another crime, fun or to relieve boredom, or emotionally related causes.

US arson statistics

According to an Insurance Research Council study, only about 14% of arson suspects are said to be motivated by a desire to defraud an insurer.

The National Fire Protection Association (NFPA) estimates:

• There were 75,000 deliberately set or suspicious structural fires in 2000, up 4.2% from 72,000 in 1999—the year representing the lowest level in 12 years.
• The 2000 estimated property loss figure of $1.34 billion was slightly higher (4.6%) than the $1.28 billion in 1999.
• There were 505 civilian deaths due to arson in 2000—a 36.5% increase from the 370 in 1999.

Ohio arson statistics

According to reports from the Ohio Fire Marshal’s Office, 4,317 incendiary fires—including structures and vehicles—occurred in 2000, an increase of 28.9% from the 1999 figure of 3,350. An additional 3,989 “suspicious fires” were reported in 2000, as compared to 3,643 the previous year. State reports also showed 94 civilian injuries, 38 deaths and over $55.6 million in losses resulted from Ohio arson activity in 2000 (click here for the chart).

Ohio’s anti-arson program

The Ohio Blue Ribbon Arson Committee—composed of firefighters, police officers and insurance officials—offers rewards for information leading to the identification of the person(s) responsible for an act of arson. The fund was established in 1978, with reward money provided by the insurance industry.

Through November 2001, 346 rewards totaling $322,700 have been awarded to recipients since the program’s inception, many of whom request anonymity. Its efforts assisted in the successful resolution of at least 347 cases set by arsonists, 91 of which were attempts to defraud insurers. The savings to the Ohio insurance industry are in excess of $4 million.

The program works by placing posters at the sites of suspicious fires. Individuals with information concerning the cause of the fire call local police or fire officials, whose telephone number is listed on the poster. Awards from the fund are made by the Blue Ribbon Arson Committee.

Investigating arson cases

State laws allow insurers and law enforcement agencies to exchange arson information, which eliminates the threat of civil suits for libel or violation of privacy.

Even with today’s sophisticated technological modeling programs, arson investigation remains a time consuming process which helps investigators to determine how and where fires originate. This process is critical in evaluating the validity of claims where the cause of the fire is unknown or suspicious. The investigation process enables investigators to better determine fire patterns that can provide clues as to whether the fire was intentionally set.

If you’ve filed a claim and the cause of fire can’t immediately be determined, you may experience delays in the claims settlement process as the investigator evaluates the property. During the investigation, failure or refusal to cooperate could be considered a breach of the insurance policy conditions, thereby voiding coverage.

The National Fire Protection Association reports that the 785,250 volunteer firefighters far outpace the 279,900 career firefighters. Nearly 22,000 of the 35,000 (60%) fire departments in the US are run by volunteer squads. (Best Review, 7/01)

Click here for "1999-2000 Ohio City Arson Report."

Source: Ohio Fire Marshal, Fire Prevention Bureau