Arson Investigations

- Motives
- Fire Scene "Red Flags"
- Claim File "Red Flags"

Was the fire accidental or was it arson? There are many red flags of arson that an adjuster can identify at his/her desk when the loss is reported. There are other red flags 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 UIS is conducting the investigation, even in cases of arson, the client can expect all subrogation avenues to be fully investigated and documented.

Arson accounts for billions 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, UIS 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. UIS would be glad to provide you with a copy of an article outlining the pro's and con's of a split investigation when arson has been detected. For a free copy of the article simply call Carter Roberts at 1-800-615-4840.

Although UIS believes that the most effective arson investigation is done by an investigator who has conducted the scene examination, we also provide investigators to conduct follow-up investigations, should you have already chosen a split investigation. When the fire is arson and UIS has been assigned to conduct the investigation, the arsonist has met his match. The worst thing that can happen to an arsonist is for a UIS investigator to be given the assignment.

Arsonists beware; when UIS is on the case we will turn over every leaf and uncover every fact about the claim. Not only may you be denied insurance funds from your fraudulent act, but you may very well end up behind prison bars for many years. As private investigators we are obligated to report criminal acts to local investigative officials.

Motives
All fires fall into one of three categories: Accidental, Incendiary or Providential. Most fraudulent fires fit into the incendiary category, and where fraudulent fire occurs, a human hand is always involved. Somewhere, perhaps hidden in a maze of seemingly unimportant facts, lies a motive.

Motive may be the first indication of potential arson. Establishment of a motive also aids in identifying a potential or possible suspect. The following seven motives for incendiary fires are routine for fire investigators:

1. Fraud
2. Effort to hide another crime
3. Jealousy
4. Revenge
5. Thrill
    a. Pyromaniac
    b. Juvenile
    c. Sexual
6. Riots / Vandalism
7. Terrorism

Fraudulent fires set to defraud the insurance company are usually motivated by economics. When the corpus delicti of arson has been established, you can expect UIS to seek out and identify the motive for the fire.

Fire Scene "Red Flags" (In order of Priority)
Look for what is there that should not be and for what is not there that
should be.

	Large amount of damage
	Low burning
	Unidentifiable point of origin
	No "V" burn patterns present
	Lack of accidental causes
	Separate and unconnected fires
	Unusual burn patterns and high heat stress
	Windows blown away from structure
	Evidence of forced entry
	Missing inventory
	Missing personal items such as photos, bibles, yearbooks, weapons, jewelry
	Evidence of a previous fire
	Unkempt yard
	"For sale" signs
	Fuel cans
	Fire extending beyond the perimeter of the structure

Claim File "Red Flags" (In order of Priority)

	Fires occurring at night
	Insured out of town and with solid alibi
	Recently issued policy
	Recent endorsement to policy
	Insured overly pushy
	Insured very familiar with insurance terms
	Insured behind on mortgage payments
	Previous claims by insured
	Hand-delivered proof of loss
	Fires occurring close to expiration date of policy
	Over-insured property
	Property for sale
	List of out-of-state suppliers
	Many antiques claimed as destroyed
	Sprinkler system recently de-activated
	Alarm system not set
	Recent decline in utility use
	Business or liquor license lost by insured
	Lease with fire-termination clause
	Company needing to upgrade old equipment
	Stock becoming obsolete (shoes, clothing, food products)

If it appears that the insured will benefit in any manner from the fire, even indirectly, the fire warrants further investigation. UIS will provide its clients with internal audits of claim files to identify and weigh indicators of fraud. Simply call the closest UIS Service Center and speak to one of our territorial managers.