A few years ago I was privileged to take a class from Randy Clifton, retired from Federal law enforcement and a pioneer in force-on-force training. He spent a lot of class time training us to avoid what I call "blue on green" events (well-intentioned police officers shooting well-intentioned concealed carriers).

In my opinion, there's no one-size-fits-all rule here. With that said, generally speaking having a firearm in your hands when the cops have theirs out is one of those bad ideas you read about.

While I'm sorry about your neighbor's house, I'm glad the cops were able to arrest those people and that nobody was hurt.