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An owner's ISO DP-3 rental dwelling becomes vacant after a tenant moves out. Seventy-five days into the vacancy, vandals break windows and spray-paint the interior walls. Which statement BEST describes the policy's response to the V&MM loss under the standard ISO vacancy provision?
ALoss is fully covered because the dwelling had been lawfully occupied by a paying tenant at some point within the previous 12 months before the vandalism occurred
BLoss is covered but subject to a mandatory 25% co-payment by the insured for any vandalism during a vacancy period
Loss is excluded because V&MM is not covered once the dwelling has been vacant for more than 60 consecutive days before the loss
DLoss is covered as long as the dwelling was actively listed for rent with a broker throughout the entire vacancy
Why this is the answer
Standard ISO Dwelling forms include a vacancy provision that excludes loss caused by vandalism and malicious mischief — and breakage of glass and safety glazing material — if the dwelling has been vacant for more than 60 consecutive days immediately before the loss. At 75 days vacant, the V&MM loss falls outside coverage. Other perils such as fire and windstorm generally remain covered, although some carriers reduce payments for any loss after vacancy (ISO DP 00 03 Section I Perils Insured Against / Vacancy provisions).
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