Question

Ted gets into an argument with his neighbor over parking arrangements. In a fit of anger, Ted goes over to his neighbor's home and scratches up her car with a key, causing $2,000 in damages. The next day, Ted realizes his poor behavior and files a claim with his insurer for his liability in the damages to his neighbor's car. Why might Ted's insurer deny his claim?

A. Ted's vandalism was intentional, and therefore excluded under his policy.
B. Ted's neighbor will have to file a claim with her own insurer.
C. Insurance policies do not cover vandalism.
D. Ted's neighbor was partially responsible for the damage, and thus will pay a pro rata portion of the loss.

Answer 1

Ted's insurer may deny his claim because Ted's act of scratching his neighbor's car was intentional and most insurance policies exclude coverage for deliberate acts of vandalism.

Step-by-step explanation:

Why might Ted's insurer deny his claim? The most likely reason is A. Ted's vandalism was intentional, and therefore excluded under his policy. In general, insurance is designed to cover unforeseen and accidental damage, not deliberate acts of destruction. Many policies have explicit exclusions for intentional acts, and vandalism is typically considered an intentional act. Since Ted intentionally scratched up his neighbor's car, this would not be considered an insurable incident.

While the neighbor might have to file a claim with her own insurer (B), and Ted's insurer might indeed not cover vandalism if the policy states so (C), these reasons are not as directly applicable as the fact that the act was intentional. Additionally, it is typically not the case that the one who damages property can argue that the other party was partially responsible (D), especially when the actions taken were deliberate and intentional.