Fire coverage is historically the most basic element of property insurance coverage. A typical property insurance policy provides “open peril” coverage for any damage sustained to a building unless the peril causing the damage is expressly excluded in the policy.
A New Approach: Disclaiming Coverage for Arson to a Vacant Building in Standard Fire Policy States
While insurers have often tried to exclude losses for arson occurring in a vacant building under the typical vandalism exclusion, there is no clear consensus for how a given court may rule in such a situation. The biggest hurdle appears to be the differing opinions of the "average" insurance purchaser from state to state, and there appears to be very little rhyme or reason for the difference in results.
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