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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 intentionally set fires that destroyed $824 million in insured property, including buildings, factories, churches and motor vehicles, in 2003.
• Vandalism is the leading cause of arson.
• Between 20–25% of arson fires are drug-related.
• Children under 18 are responsible for half of the arson fires in the US.

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, other studies find it higher. 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 2003, there were 37,500 intentionally set structure fires (down 15.7% from 2002) and 30,500 intentionally set vehicle fires (down 25.6% from 2002).
• 2003 arson loss statistics were much lower than 2002 figures. Property losses were estimated at $692 million - significantly lower than the $919 million in 2002. The estimated vehicle property damage figure of $132 million was much lower than the $222 million in 2002. Note that arson statistics do not include “suspicious fires” which are no longer reported by the US Fire Administration. FBI Arson statistics only include fires that have been determined through investigations to be willfully or maliciously set and excludes fires of suspicious or unknown origins.
• There were 305 civilian deaths due to arson in 2003.
• According to the FBI, the average dollar loss for arson in 2003 was $11,942. Structural property arson averaged $21,276 while mobile property loss averaged $6,381.

Source: Excerpts from "Issues Update," Insurance Information Institute

Ohio arson statistics

According to reports from the Ohio Fire Marshal’s Office, 3,798 arson fires—including structures, vehicles and other fires—occurred in 2004. Reports show 103 civilian and 128 firefighter injuries, along with 40 civilian deaths, are attributed to arson fires in Ohio. Arson losses totaled $57.9 million in Ohio during 2004 (See chart below).

Ohio’s anti-arson program

The Ohio Blue Ribbon Arson Committee (BRAC)—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.

Since its inception, the BRAC program has awarded 387 rewards totaling $388,800 to recipients, many of whom request anonymity. Its efforts assisted in the successful resolution of at least 466 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. Learn more about the Blue Ribbon Arson Committee at www.ohiofairplan.com/public/arson.asp.

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 "2002-2003 Ohio City Arson Report."

Electrical fires in homes cause $1.7 billion in damage and result in 7,000 injuries and 900 deaths each year. (US Consumer Product Safety Commission from The Columbus Dispatch, 7/3/04)

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 August 3, 2005