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Arson, Vandalism, and Theft

When someone sets a fire, breaks in, or damages property on purpose, the person who did it is responsible, but they often have no money and their insurance won't cover intentional acts. Recovery usually comes from three places: court-ordered restitution, parents of a minor in some states, or a business that failed to secure the property. Stay close to the police report and the court case.

What it coversCriminal restitution, parental liability, security and alarm companies

Step-by-step checklist

Identify

Contact the claim adjuster right away. Ask them to hold the scene and for permission to retain an expert at the client's expense. Note the call in the file.
On every claim, ask the client whether they want an origin and cause investigator to review the scene, or confirm one is already assigned. Note their answer in the file so the decision is on record.
Make sure no evidence is touched or moved until the expert has secured the scene
Get the client's approval for the scene exam cost. Most run at least $1,600 with travel, the day rate, and expenses.
Get the police report and the fire marshal's report
Find out whether anyone was arrested or charged
Look for anyone who failed to secure the property, like a security, alarm, or property management company

Hands off until the expert arrives. Nothing at the scene gets touched, moved, repaired, or thrown out until the origin and cause investigator has secured it. Evidence that's moved early can sink the whole recovery.

Notify

Notify the prosecutor's office or victim services of your restitution claim
Notify the person responsible, and their parents if they are a minor
Notify any security, alarm, or management company and their carriers

Investigate

Follow the criminal case: charges, plea, sentencing date
Get video, alarm logs, and security patrol records
Review security and alarm contracts for waivers and liability caps
Check the state's parental liability law if a minor was involved

Demand

Send the restitution request with proof of payments before sentencing
Sort the supports into photos, estimates, invoices, and reports
Send the full demand packet to any civil party

Negotiate

Track restitution payments, which can take years
Follow up, and use a tolling agreement if the deadline is close
If liability is accepted, negotiate. If not, review for suit or a civil judgment.

Settle

Review the release, and make sure it doesn't cancel a restitution order you still want paid
Receive payment, issue the deductible and client payments
Final file review, then close or move to monitoring

1. Identify

Common losses

Loss	Where recovery comes from
Arson by a known person	Restitution, a civil claim, or the person's own assets
Fires set by minors	Restitution, and in many states the parents, up to a limit set by law
Break-ins and theft	Restitution, and a security or alarm company that failed to respond
Vandalism of vacant buildings	A property manager or security company who was supposed to secure or patrol it
Employee theft	Restitution, and sometimes the staffing company that placed the worker
Theft from a business's care	See the Property Damaged in Someone Else's Care guide

Responsible parties to consider

The person who committed the act
The parents of a minor, where state law allows
A security guard or patrol company
An alarm or monitoring company
A property manager or landlord who failed to secure the building
A contractor who left the building open

Why their insurance usually won't pay

Most liability policies exclude harm the insured meant to cause. So a claim against the person who did it usually has no insurance behind it. That is why restitution and third parties matter so much.

2. Notify and investigate

Restitution through the criminal case

In most states, the court can order the person convicted to repay victims, and an insurer that paid the loss can often be included. Contact the prosecutor or victim services office early, and send proof of what was paid before the sentencing date. After sentencing, collecting on the order may take years of small payments.

Parental liability

Many states make parents responsible for damage their minor child causes on purpose, but the amount is often capped by law. Check the state's statute for the limit and any conditions.

Evidence checklist

Police report and case number
Fire marshal or arson investigator's report
Court records: charges, plea, sentencing, and restitution order
Video and alarm logs
Security and alarm contracts
Photos and repair estimates

3. Demand, negotiate, and settle

Liability theories

Intentional wrongdoing by the person who did it
Parental liability statutes
Negligent security, or failure to secure a vacant building
Breach of a security, alarm, or management contract

Defenses to expect

Defense	How to answer it
Intentional act exclusion	Expected for the person who did it. Look to restitution and third parties instead.
Alarm contract waiver or cap	These are usually enforced. Read it, and check for a gross negligence exception.
No duty to protect against crime	Show the security company or manager took on that duty in its contract
No money to pay	Restitution orders and civil judgments can last for years. Consider whether monitoring is worth it.

Negotiating and settling

Coordinate with the insured, who may have their own restitution claim for the deductible and uninsured losses.
Review the release with the release checklist.
Close with the standard closing letter and the deductible reimbursement letter.

4. Letters for this loss

Step	Letter	Sent to
Identify	Subrogation Opening Letter to Insured	Insured: police report, case number, photos
Notify	Notice of Subrogation Interest and Insurance Request	The person responsible, parents, security or alarm company
Notify	Notice of Subrogation Interest to Adverse Carrier	Security, alarm, or management company's carrier
Demand	Subrogation Demand to Responsible Party or to Adverse Carrier	Party or carrier
Negotiate	Second Demand with Escalation Notice, Tolling Agreement Request	Party or carrier
Settle	Release Review Checklist, Closing (Made Whole) or Pro Rata, Deductible Reimbursement	Client and insured
No recovery	No Recovery Closing Letter	Client, for example no suspect identified

No suspect yet: send the Suspect Notification Request to Police Department so the department lets you know if someone is identified, charged, or arrested.

Restitution: send the Restitution Request to Prosecutor as soon as charges are filed, and before sentencing. To find the criminal case, use the Research Tools and Court Lookup Guide.