VIRGINIA BEACH, Va. (WVEC) -- A grandmother accused of setting fire to the house where she lives with her son, daughter-in-law, and the couple's three children entered a plea of not guilty by reason of insanity Wednesday.

Investigators said Anita Holcombe, 60, was alone at the home in the 3000 block of Pewter Road at the time of the fire in January.

A neighbor called emergency dispatchers around 9:30 a.m. after she saw smoke and flames coming from the house.

Firefighters said Holcombe was outside the house when they arrived and that she admitted she started the fire.

An accelerant-sniffing dog found traces of gasoline inside three bedrooms.

The home had significant damage, and the fire displaced everyone who lives there.

Holcombe has a review set for August 9.