Insurance companies are in the business of paying the least amount as possible on losses. Do you own rental property? What happens when your rental property is vacant and there is a fire? The first thing your insurance is going to do is get the fire department report. Frequently the report will list the cause of the fire as undermined. That’s not the end of the investigation for your insurance company. The next step is for your insurance company to hire an expert, someone they have a working relationship with. The expert will investigate the loss and determine the fire was caused by arson.
Once the insurance company has a report from their expert that the fire was caused by arson the denial letter goes out to the insured. Your insurance company will quote the malicious mischief definition under the vandalism coverage in your policy to support its decision that arson is a form of vandalism. Your insurance company will then deny the claim under the vacancy exclusion contained in the vandalism coverage because the property has been vacant for more than 90 days.
In 2015 the California Court of Appeals in Ong v. Fire Ins. Exchange ruled that unless arson is defined as vandalism under the vandalism coverage, the vandalism vacancy exclusion does not exclude coverage for a fire caused by arson.
You don’t have to accept your insurance company’s decision to deny your claim. Call us for a free consultation with a partner of our firm. We will fight for everything you are entitled to.