Insurance nuances of vandalism, theft claims

Coverage Q&A: Property damage caused in the course of vandalism or theft is often covered by insurance.

Under a standard dwelling and landlord insurance policy, ensuing losses caused by acts committed in the course of vandalism and mischief are not covered if the property has been vacant for 60 days. (Photo: Shutterstock)

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Question: We have an insured who carries a dwelling and landlord policy (DP-1). Burglars broke in/forced entry into the home and stole the boiler. That caused water damage to the home. Is the ensuing water damage covered?

— Connecticut subscriber

Answer: Your policy excludes theft but does include coverage for damage to the building caused by burglars. That would be the forced entry, so that is covered.

Ensuing losses caused by acts committed in the course of vandalism and mischief are not covered if the property has been vacant for 60 days. The water damage is an ensuing loss to the theft, but it is also an ensuing loss to the vandalism that caused the forced entry and the removal of the boiler. Unless the property was vacant for 60 days or more, the loss should be paid.

Foreclosed property vandalism, theft

Question: We have a vandalism loss to a home that is foreclosed. Vandals also stole a range and a fridge. We feel that the theft is not covered as the appliances could be considered personal property because they were not permanently attached to the home. The fridge was connected to the water line and the range was connected to the gas line, but both are movable property. The policy specifically excludes personal property but does not mention appliances or fixtures.

Do you feel these items would be covered under this policy? Vandalism and theft are covered perils so the question is related to the appliances alone. Here is the policy language:

Foreclosed buildings at the location described on the Declarations for which a Limit Of Insurance is shown. This includes:

  1. Detached garages, storage sheds and other structures at the described location;
  2. Outdoor swimming pools and fences;
  3. Satellite dishes, radio and TV antennas less than 100 feet in height;
  4. Underground pipes, flues or drains; and
  5. If not covered by other insurance, materials and supplies on or within 100 feet of the location described on the Declarations for use in the construction, alteration or repair of the “foreclosed” building or other structures at this location.

However, loss to building materials and supplies not attached as part of the building structure caused by or resulting from theft are excluded.

The following property is not covered under Foreclosed Building Coverage:

  1. Land (including land on which the property is located), water, growing crops or lawns (other than lawns which are part of a vegetated roof);
  2. Trees, shrubs and plants (other than trees, shrubs and plants which are part of a vegetated roof);
  3. Personal property;
  4. Bulkheads, pilings, piers, wharves or docks;
  5. Retaining walls that are not attached to the “foreclosed” building; or
  6. Bridges, roadways, walks, patios, parking lots or other paved surfaces.

— Wisconsin subscriber

Answer: A home is more than simply four walls, a roof, and floors that provide shelter. In order for it to be used for its intended purpose, certain things are considered a given. Heat for one, and the ability to cook and store food, as well as electricity to provide and other such features. While the stove and refrigerator are movable objects, people do not frequently upgrade them or rearrange them for aesthetic purposes. The refrigerator, stove and dishwasher are necessary parts of making a dwelling habitable. Microwaves are a little different as they are much smaller and readily portable, so unless built in they are personal property.

Copper: Accessory or essential fixture?

Question: An unknown person stole the copper and major components from our policyholder’s A/C unit. He filed a claim for vandalism. However, the policy states: “Vandalism, meaning willful and malicious damage to, or destruction of, the described property… We will not pay for loss or damage:

  1. To glass (other than glass building blocks) that is part of a building, structure, or an outside sign; but we will pay for loss or damage to other property caused by or resulting from breakage of glass by vandals.
  2. Caused by or resulting from theft, except for building damage caused by the breaking in or exiting of burglars.”

Some adjusters feel we should allow for the components damaged as a result of the theft even though we do not allow for the theft. We would like your input in this as according to the policy as it appears no damages that resulted from the theft would be covered either.

— North Carolina subscriber

Answer: The loss would not be considered vandalism. Webster’s defines vandalism as: “Willful or malicious destruction or defacement of public or private property.” It doesn’t appear that the theft was a malicious act of destruction but a theft of copper.

However, any damage done to the building in the process of the theft of the copper and a/c components would be covered. The a/c units could be considered part of the building.

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