Arson Insurance In arson, property (such as a home or real estate) is purposefully destroyed by fire. All 50 states consider Arson to be a crime. The crime of arson is regarded as a serious one in the United States. Penalties are also attached to it. It is also possible to die or be injured in an arson fire. Additionally, arson can increase the cost of homeowners and business insurance policies. Does home insurance cover arson before we get to the topic? Here are some reasons why homeowners should be concerned about arson.