Is a home undergoing major renovations unoccupied or vacant? Credit: John Disney/ ALM
PropertyCasualty360.com editor's note: Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. The following letter was edited for length and clarity.
I'm currently engaged with a vandalism claim under State Farm, policy FP8103.3.
They are trying to deny the claim based on the vacancy clause, which states: "g. vandalism and malicious mischief or breakage of glass and safety glazing materials if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant."
The property had significant renovation work around 25 days prior, including the tear down and rebuild of porches on the front and back of the building.
There is a also concurrent work of various maintenance people and other contractors in and out of the building at various times around that, as well as showings of the property as it was intended for rent (four open houses in the 30 days prior).
I feel it should be covered as the core of the vacancy clause is about an abandonment hazard and I believe it's clear the property is not abandoned.
I also feel the vacancy clause and "building under construction" should easily include work on an addition to an existing structure (to say nothing about renovation).
Could you give me your opinion on the matter? Thank you!
New Jersey Subscriber
Unfortunately, a house being worked on is not the same as a house being lived in, and a property under construction is different than a property under renovation.
The policy language clearly states that a property being constructed is not considered vacant, but in your case the property is already constructed, there's just work being done. It's completely different to put up walls and a roof than it is to rebuild the porch on an existing completed dwelling. Workmen leave at the end of the day and may or may not be around on weekends — a showing takes half an hour to an hour — the property is unoccupied the rest of the time.
However, there's a significant difference between a property being vacant and unoccupied — was the house furnished? Were appliances, beds and furniture in the dwelling? Could it have been lived in? If so, then it wasn't vacant, just unoccupied, and then the vacancy exclusion would not apply. The details will make all the difference here.
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