(June,
2011)
SECTION I—PERILS INSURED AGAINST
A. Coverage A - Dwelling Coverage and
Coverage B - Other Structures
1. The insurer’s obligation under these coverage parts is to protect
eligible property for any source of direct loss. This means that indirect loss
does -not qualify for coverage under Coverages A and B.
2. This portion of the policy goes on to list sources of loss that are
excluded. Specifically, no coverage
is provided for:
c.(4). Vandalism and malicious mischief.
This exclusion
takes effect if the insured premises is vacant for 60 days before the loss.
Further, the exclusion bars coverage for losses that ensue when caused by
intentional and wrongful acts committed during vandalism or malicious mischief.
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Example: The Warmkline
family has a Special Form policy which runs from 1/1/10 to 1/1/11. On March
1, the family moves to Russia for 6 months, taking their furnishings and
personal property. On June 5th, several neighborhood bad boys break into the
house through a basement window. They trash the interior and, just as they
are leaving, one of the miscreants empties a can of charcoal lighter fluid
into the living room and lights a match. Since the home was vacant for more
than 60 days AND since the fire loss was caused by vandals, the entire loss
is ineligible for coverage.
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