For vandalism coverage under a Homeowners Policy, which statement is TRUE?

Vandalism coverage is typically designed to protect homeowners against loss or damage caused by malicious acts, such as graffiti or intentional destruction of property. In the context of a Homeowners Policy, coverage for vandalism is often limited or excluded under specific circumstances. When a dwelling is under construction, it is commonly deemed to be at a higher risk for vandalism due to its unfinished state, which may attract vandalism or theft. As a result, many insurance policies exclude vandalism coverage for properties that are not yet complete. This reflects the insurance industry's risk assessment practices, recognizing that unfinished properties can present unique vulnerabilities.

The other statements do not accurately describe how vandalism coverage is generally structured within homeowners policies. Coverage is not blanketly included in all situations, as many policies do impose certain limitations or exclusions. Additionally, coverage is not solely restricted to year-round dwellings; various forms of dwellings can qualify for vandalism protection depending on state regulations and the specifics of the insurance policy. Furthermore, while occupancy may influence coverage options in some policies, it does not universally dictate whether vandalism is covered or not.