Residents on Old Road described two loud explosions like "a bomb had gone off" on Tuesday, January 3.
Two fire appliances were called to the scene at around 12:10am and extinguished the fires with two hose reel jets and two breathing apparatus sets.
Devon and Cornwall Police say that the report of an arson to a vehicle in a car park in Old Road, Tiverton, between midnight and 00.15am.
The fire spread to the owner's £5000 Volkswagen Transporter van, which was parked next to the caravan, and this was also destroyed.
The Abbey Spectrum caravan was valued at £4,000 and the Volkswagen Transporter van was valued at £5,000.
Both vehicles had been issued a notice under the refuse disposal (amenity act 1978) and the owner had been given notice that Mid Devon District Council believed the vehicles to be abandoned and that unless the vehicle was removed within seven days, the council would remove it.
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