Can an house insurance company drop you if you are having a dispute with a neighbor?

A friend of mine is having major problems with a neighbor. She was on the phone with her house insurance agent and she actually told the women about her neighbor and said if her house burns down they should look at the neighbor for setting it.
omg I thought that was insane to tell the agent.
Am I wrong??
She has called the police on her neighbor 2 times already.
Last week she called the police because someong decappitated her kitten. That is how nutty her neighbor is.
sorry for the typo

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Orignal From: Can an house insurance company drop you if you are having a dispute with a neighbor?