Okay, I'm sure the following idea will be met with nothing but hate, however here goes.
How about the idea of zones,
Zone type 1, is what I'd term the hermit friendly zone, if you live in and have your hearth in zone 1, you cannot commit crimes. period, anywhere, nor can crimes be perpetrated against you.
Zone type 2, is the "I want your stuff" Zone, in this zone you can commit, trespassing, theft and vandalism, again you have to have your hearth fire in this zone to be able to do these actions, and the same actions can be performed against you as well.
Lastly Zone 3 the all out Do whatever you can get away with zone, all crimes possible, for and against,,
Also make It so that you have to have your HF in whichever Zone for 1 week before you gain the benefit of the zone, as well as making it so you may only move your HF once per week.
Red Hand status still applies if say, you commit a heinous crime and then fled to zone 1, in other words, you could still be tracked down and dealt with, since your HF would need the week before your protection kicked in.
(let the hate begin)