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Can a hotel use insurance to cover the costs of vandalism?

On Behalf of | Mar 4, 2024 | Insurance Law

Vandalism can be a significant headache for any business, including hotels. When property damage occurs due to vandalism, it can lead to unexpected expenses and disruptions to operations.

One question that often arises in such situations is whether a hotel can rely on insurance to cover the costs incurred.

Understanding insurance coverage

Hotels typically carry insurance policies to protect themselves against various risks, including vandalism. These policies may include coverage for property damage such as broken windows, graffiti or other forms of malicious destruction. However, the extent of coverage can vary depending on the specific terms and conditions of the policy.

Filing a claim

When vandalism occurs, the hotel management should promptly notify their insurance provider and file a claim. Documenting the damage thoroughly can make all the difference. This includes taking photographs and gathering any relevant evidence. Providing this information to the insurance company can help expedite the claims process and ensure a smoother resolution.

Coverage limitations

While insurance can help offset the costs of vandalism, there are limitations and exclusions of which to be aware. Some insurance policies may have deductibles or coverage limits that could affect the amount reimbursed for damages. Additionally, certain types of vandalism may not fall under the terms of the policy.

Hotels regularly spend as much as $250,000 per year to repair or replace damaged carpets and furniture. While some damage is certainly the result of accidents, it is not uncommon for hotel property to become the target of vandalism. Business owners need to understand when insurance can bear the burden of these costly damages.