Dallas Fort Worth Insurance Lawyer Blog
A vacancy exclusion is common in most policies insuring structures unless it is a type of policy that specifically provides that type of coverage. Here is a 2024 opinion wherein the insurer denied coverage under a renters policy due to the insured not living in or occupying the property. The opinion is from the Eastern District of Texas, Lufkin Division. It is styled, Crystal Childers and Bradley Childers v. Allstate Indemnity Company.
The Childers bought a second home as an investment rental property in 2021. The home required repairs and remodeling before it could be rented. While the home was being worked on and through March 29, 2022, no one lived there.
The Allstate policy contained the two coverage exceptions:
16. Theft or burglary. However, we will cover damage to the exterior of covered building structures caused by the breaking in of a burglar or burglars if the dwelling is completed and has not been vacant or unoccupied for more than 60 consecutive days immediately prior to the loss. When we cover damage to the exterior of covered building structures caused by a burglar or burglars, we will also cover damage to interior surfaces of exterior doors and windows damaged by the break- in.
17. Vandalism. However, we do cover sudden and accidental direct physical loss caused by fire resulting from vandalism unless your dwelling has been vacant or unoccupied for more than 60 consecutive days immediately prior to the vandalism.
On March 29, 2022, Mr. Childers’s grandparents informed him that they had driven by the home and noticed that a pad built for a new air conditioning unit was empty. Plaintiffs went to the home and discovered that it had been seriously burglarized and vandalized. The air conditioning unit and large amounts of copper wiring and plumbing had been stolen, leaving the home damaged.
A claim was denied and few days later Allstate notified Mrs. Childers that the claim had been denied and provided the reason for its denial. Allstate asserts that coverage was denied under the theft or burglary and vandalism provisions because the home had been “vacant or unoccupied for more than 60 consecutive days immediately prior to the loss.”
In her deposition Ms Childers testified to the Facts set forth above. In response, Allstate filed a motion for summary judgment. The Court granted the motion.
This case discusses other issues that come up in this type of case but the relevant matter for an insured to know is that these exclusions exist in policies and a person must make sure they are getting the coverage they need.