Vacancy Provision / Vandalism Reservation of Rights

Dear {{named_insured}},

1. Context We are investigating your claim for vandalism damage at {{loss_location_address}}, reported under claim number {{claim_number}} for the date of loss {{date_of_loss}}. This letter is to inform you that we are proceeding with our investigation under a "Reservation of Rights."

2. The Decision While we are continuing to investigate the facts of your loss, we have identified a potential coverage issue that may affect whether your claim is covered under your policy. Specifically, we are investigating whether your property was vacant for 60 consecutive days or more prior to the date of loss, which may limit or exclude coverage for vandalism.

3. The Evidence During our initial investigation, we received information suggesting that the utilities at the property have been disconnected for several months and that no one has resided there since {{vacancy_start_date}}. Because the reported damage was caused by vandalism, the occupancy status of the property is a critical factor in our coverage determination.

4. The Policy Basis Your policy, number {{policy_number}}, contains the following provision regarding vacancy:

> Section I - Conditions > Vacancy. If the dwelling where the loss occurs has been vacant for more than 60 consecutive days before the loss, we will not pay for any loss caused by: > 1. Vandalism or malicious mischief; > 2. Glass breakage; > 3. Water damage; > 4. Theft or attempted theft.

If our investigation confirms that the property was vacant for more than 60 consecutive days, these exclusions may apply and your claim may be denied. By investigating your claim or by any other action, we do not waive any of our rights or defenses under the policy or applicable law.

5. The Path Forward We will continue our investigation into the occupancy of the property and will notify you as soon as a final coverage decision is made. In the meantime, please provide us with any documentation you have regarding the occupancy of the property, such as utility bills, lease agreements, or other proof of residency. If you have any questions, please contact {{adjuster_name}} at {{adjuster_phone_number}}.