If a homeowner commits arson, how is their insurance claim most likely paid?

When a homeowner commits arson, their insurance claim is most likely denied due to the deliberate nature of the act. Insurance policies typically contain clauses that exclude coverage for losses resulting from illegal activities, including arson. This means that when a policyholder intentionally sets fire to their property, they have violated the terms of the insurance agreement. As a result, the insurer has the right to refuse payment for any losses stemming from that act. This principle is grounded in the expectation that insurance is intended to cover unforeseen accidents and losses, not intentional wrongdoing. Thus, the entire loss would be denied, making the conclusion that the claim is not payable due to arson correct.