Arson Prevention and Reconstruction Incentive Act of 1981

Arson Prevention and Reconstruction Incentive Act of 1981 - Amends the National Housing Act to require all statewide plans to assure that "fair access to insurance requirements" (FAIR plans) contain provisions which limit the policy proceeds payable in connection with a loss caused by fire to the market value of the structure destroyed unless the owner certifies, in a policy endorsement, an intention to rebuild.

Directs the Federal Insurance Administration, in consultation with the National Association of Insurance Commissioners, to develop a model clause for insurance contracts which provides such limitation for owner-occupied residential and small business property.

Requires the Federal Insurance Administrator and the Director of the Federal Emergency Management Agency to develop Federal minimum standards for arson investigation and prosecution, and for information disclosure by insurance applicants. States that such standards shall be applied in any State which does not adopt substantially equivalent standards within two years.