Does Vandalism Raise Your Insurance Premium?

Vandalism, the intentional destruction or defacement of property, can be a frustrating and costly experience for any property owner. This article explores how insurance policies address vandalism claims, the process of filing a claim, and the factors that determine whether your insurance premium might increase.

Understanding Vandalism Coverage

Vandalism is defined in insurance as the deliberate damage or destruction of property by a third party, distinct from theft itself. This can include various acts, such as graffiti, broken windows, slashed tires, or defacing a vehicle. The specific coverage for such damage depends on the type of insurance policy you hold.

For homeowners, standard policies like an HO-3 (Special Form) or HO-5 (Comprehensive Form) typically include coverage for vandalism. An HO-3 policy covers the dwelling structure against “open perils,” meaning it covers all causes of loss unless specifically excluded, and personal property on a “named perils” basis, which lists specific covered events like vandalism. An HO-5 policy offers broader protection by covering both the dwelling and personal property on an “open perils” basis. Most homeowners policies exclude vandalism coverage if the property has been vacant for an extended period, often 30 to 60 days, or if the damage was caused by an occupant listed on the policy.

Regarding vehicles, vandalism is typically covered under the “comprehensive” portion of an auto insurance policy. This coverage protects against damage not caused by a collision, such as fire, theft, natural disasters, or vandalism. Comprehensive coverage specifically addresses damage to your vehicle from non-accident-related incidents. If you do not have comprehensive coverage on your auto policy, damage from vandalism would generally not be covered.

The Claim Process for Vandalism

When vandalism occurs, ensuring personal safety is the first priority. If the situation feels unsafe, leave the area and contact emergency services. After ensuring safety, contact local law enforcement to file a police report, as many insurance companies require this official documentation for vandalism claims.

Thorough documentation of the damage is essential. This involves taking detailed photographs and videos of all affected areas before any repairs or cleanup begin. This visual evidence, along with the police report number, should then be provided to your insurance company promptly when you notify them of the incident. Many insurers offer various methods for initiating a claim, including phone calls or online portals.

Once the claim is filed, your insurer will typically assign a claims adjuster to assess the damage and estimate the repair costs. The adjuster will review your documentation and inspect the property or vehicle to determine the extent of the loss. After the assessment, the insurance company will make a settlement offer, which will typically be the cost of repairs or replacement, minus your policy’s deductible. The deductible is the amount you are responsible for paying out-of-pocket before your insurance coverage applies.

Factors Influencing Premium Changes

The question of whether a vandalism claim will raise your insurance premium involves several contributing factors. A single, isolated vandalism claim might have a lesser impact compared to a history of multiple claims over a short timeframe, as a pattern of claims signals higher risk to insurers. The overall cost of the damage, or the severity of the claim, also plays a significant role in determining any premium adjustments. More expensive claims generally result in greater premium hikes.

The deductible amount on your policy is another important consideration. If the cost of repairing the vandalism damage is less than or only slightly above your deductible, paying for the repairs out-of-pocket might be more financially advantageous than filing a claim, potentially avoiding a premium increase. For instance, comprehensive auto deductibles can range from $0 to $2,000, with common choices between $250 and $500. Homeowners’ deductibles often range from $500 to $2,000.

Vandalism claims are generally considered “not-at-fault” incidents, meaning the policyholder did not cause the damage. These types of claims typically have less impact on premiums than “at-fault” claims, where the policyholder is responsible for the damage. However, some insurers may still treat vandalism as an “at-fault” claim if they cannot recover costs from the unknown vandal, which could affect any no-claims bonus you might have. A history of multiple claims, even those not deemed your fault, can still lead insurers to view you as a higher risk, potentially resulting in increased rates or even non-renewal of your policy.

During policy renewal, insurance companies review your claims history and utilize their underwriting guidelines and risk assessment models to determine premium adjustments. If vandalism becomes prevalent in a specific geographic area, insurers might implement broader premium increases for all policyholders within that vicinity, regardless of individual claims history. Different insurance companies have varying policies regarding how claims impact premiums, so the outcome can differ between providers.