Theft or Vandalism Damage?
August 29, 2016
Applicable policy is a CP 00 10 10 91, Special Cause of Loss form. It is endorsed with a Theft Exclusion, CP 10 33 11 85. The insured's building was broken into and the floor safe was sledgehammered. The point of sale cash register was also pried open and the telephone lines were cut and the surveillance cameras damaged. We have issued partial denial for cash stolen and anything related to the business personal property damaged as result of the theft, but the insured feels damage to the point of sale system cash register and cameras that were damaged in the course of the theft should be covered, as the insured considers that damage vandalism.
Virginia Subscriber
The Theft Exclusion endorsement states, “We will not pay for loss or damage caused by or resulting from theft.” An exception is made for building damage caused by the breaking in or exiting of the burglars.
The prying open of the cash register would be considered damage resulting from theft. This is not vandalism—maliciously destroying the cash register—but the burglars trying to get the cash out of it.
The camera damage is a little more on the fence. The cameras were most likely damaged to prevent them from taping the burglary, which is still not vandalism. Vandalism is generally characterized as damage done for no purpose but to destroy property, whereas the damage you describe is incidental to the burglary.
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