Arson: A Costly Crime

US arson facts

• Arson—deliberately setting fire to property for fraudulent or malicious purposes—is a crime in all states.
• Arsonists destroyed $1.1 billion in insured property, including buildings and motor vehicles, in 2002.
• Vandalism is the leading cause of arson.
• Between 20–25% of arson fires are drug-related.
• Children under 18 are responsible for almost half of the arson fires in the US.
• Arson may be responsible for most of the ten fires that made up the Fall 2003 California wildfires (caused over $2 billion in insured property damage).

US arson statistics

Although an Insurance Research Council study suggests only 14% of arson suspects are said to be motivated by a desire to defraud an insurer. Industry observers suggest profit is a primary motive for setting fires and comment on the increased use of arson by organized crime and drug dealers.

The National Fire Protection Association (NFPA) estimates:

• In 2002, there were 44,500 intentionally set structure fires (down 2.2% from 2001) and 41,000 intentionally set vehicle fires (up 3.8% from 2001).
• The 2002 estimated property loss figure of $919 million was 9.3% lower than the $1.01 billion in 2001 (Sept. 11 events are excluded from figures), while the estimated vehicle property damage figure of $222 million was higher than the $219 million in 2001.
• There were 350 civilian deaths due to arson in 2002.

Ohio arson statistics

According to reports from the Ohio Fire Marshal’s Office, 5,150 arson fires—including structures, vehicles and other fires—occurred in 2002. Reports show 119 civilian and 165 firefighter injuries, along with 30 civilian deaths, are attributed to arson fires in Ohio. Arson losses totaled $38.2 million in Ohio during 2002 (See chart below).

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 April 2004, 372 rewards totaling $361,800 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 431 cases set by arsonists, 103 of which were attempts to defraud insurers. The savings to the Ohio insurance industry are in excess of $4.3 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.

Click here for "2001-2002 Ohio City Arson Report."

Public fire departments responded to nearly 1.7 million fires in 2002. (NFPA Journal, 8/03)

Note: Due to changes in federal tracking methods, arson statistics no longer include “suspicious fires” so comparison to previous released figures is not possible.

Source: Ohio Fire Marshal, Fire Prevention Bureau as of May 11, 2004