Kate Argent, the man from the Video2C store, and the two men killed in the woods and burned in a barrel burned the Hale House in 2005. Garrison Meyers falsified the insurance investigation. The fire occurred at 7:15, according to the report. Flashbacks indicate it was dark, so it was likley 7:15 p.m. Derek claims that he and Laura were at school when it happened, so either the time is wrong on the report or they were staying quite late after school.
According to Derek, 11 people died in the fire. However, the police report says 8 people died in the fire. One of those three is accounted for in Cora, who Derek believed to be dead. It is unclear who the other 2 might have been.
Much of the house remains standing despite the fire and the unlikelihood of the fire department having been able to get a truck out to the remote location at all, much less with any speed. There are still pieces of furniture inside, and at least part of the first floor has enough of a roof to keep out the rain.
Flashbacks indicate that almost everyone was trapped into the cellar during the fire, though there is no indication as to why.
Some of the Hales who died were human.