Vandalism & Theft at a High-Rise Office Building

Overview

A 20-story office building suffered extensive vandalism and theft across all floors following multiple break-ins by unknown parties. Law enforcement responded to over 14 incidents at the property during the investigation period. Parker Loss Consultants (PLC) was retained by the insurance carrier to evaluate the scope of damage, determine causation, and provide an accurate valuation for the claimed loss.

Complicating the assignment, the insured had previously received $6.5 million for tornado-related damages that had not been repaired, requiring PLC to differentiate between pre-existing, unrepaired damages and new losses attributable to vandalism or theft.

Challenge

The primary challenges involved both causation and coverage interpretation under the policy's language and exclusions:

• Prior Loss Separation: The insured's prior tornado claim overlapped with areas of alleged vandalism, making it necessary to isolate which damages were newly sustained.
• Theft vs. Vandalism Differentiation: The policy excluded theft except for damages caused by breaking and entering. PLC was tasked with distinguishing theft-only damages from those caused by vandalism or forced entry.
• High-Rise Complexity: The building's 20 floors contained mechanical, electrical, fire suppression, and elevator systems — all reportedly damaged.
• Inflated Public Adjuster Claim: The insured's public adjuster submitted a $2.8 million claim, encompassing all alleged losses, including those not supported by evidence or coverage.

Maintaining technical accuracy, policy alignment, and credible documentation was critical to achieving a defensible position for the carrier.

Solution

PLC performed a comprehensive forensic evaluation of the property, applying disciplined investigative and estimating methodologies:

• Conducted systematic floor-by-floor inspections, documenting each instance of damage.
• Obtained specialized subcontractor quotations for electrical, mechanical, elevator, fire suppression, and security systems to ensure precise replacement valuations.
• Segregated all pre-existing tornado damages from new vandalism impacts using prior claim files, engineering records, and physical condition indicators.
• Distinguished between vandalism and theft, per policy definition — identifying where components were removed entirely (theft) versus partially destroyed or damaged (vandalism).
• Prepared a detailed estimate reflecting covered damages totaling approximately $284,000, significantly lower than the public adjuster's claimed amount.

PLC then engaged in a structured negotiation process with the public adjuster to reach a fair resolution consistent with the policy and forensic findings.

Results

After three weeks of negotiation, PLC successfully achieved a final settlement of $375,000, aligning with the verified scope of covered vandalism damage.

Key outcomes included:

• Accurate Causation Analysis: Clearly separated prior tornado damages from new vandalism losses.
• Policy Compliance: Applied policy exclusions and definitions correctly, ensuring a defensible valuation.
• Efficient Resolution: Full investigation, documentation, and settlement achieved within 8 months.
• Avoided Litigation: Claim resolved without legal escalation, saving time and substantial defense costs.
• Controlled Outcome: Settlement reached within $100,000 of reserve expectations — a successful conclusion considering the complexity and public adjuster involvement.

This case highlights PLC's ability to handle complex, multi-factor losses involving prior claims, policy exclusions, and competing valuations — achieving timely, data-driven settlements while protecting the carrier's position.