Which losses would typically lead to no payment under a property insurance claim?

Intentional acts usually lead to no payment under a property insurance claim due to the principle of moral hazard. Insurance is designed to provide coverage for accidental losses rather than losses that result from deliberate actions. When a policyholder engages in intentional acts that cause damage, such as arson or deliberately destroying their property, the insurance company is not obligated to cover those claims. This is because such actions violate the fundamental premise of insurable interest, which assumes that the insured has a vested interest in preserving their property.

In contrast, accidental fires, natural disasters, and theft or vandalism typically fall under covered events in most property insurance policies, as they are considered unforeseen and involuntary. Thus, insurance is intended to protect against unexpected events rather than self-inflicted harm or damage.