Glossary

Intentional loss

An exclusion for damage arising from an act that an insured commits or conspires to commit with the intent to cause a loss, such as arson of one's own home.

Also called: intentional acts exclusion, intentional act exclusion

The intentional loss exclusion keeps a homeowners policy from paying for damage someone causes on purpose. The ISO form defines it as a loss arising out of an act that an insured commits or conspires to commit with the intent to cause a loss. It sits among the Section I exclusions that carry anti-concurrent causation clause wording, and it applies even if other causes contributed.

The standard ISO wording also says that when the exclusion applies, no insured is entitled to coverage, even insureds who did not take part. That can be harsh for an innocent spouse or co-owner, so many states protect an innocent co-insured by statute or case law, to the extent of that person's interest, and some insurers write the protection into their forms. Check how your state and policy treat it.

The mortgage lender is protected separately. Under the mortgagee clause, the lender can generally still be paid even when the owner is barred from recovery, and the insurer may then pursue the owner for what it paid. Say a fire is proven arson by the owner (hypothetical): the owner's claim is denied, while the lender may be paid up to the loan balance.

Insurers carry the burden of proving intent, usually with fire investigators' findings and financial evidence. See arson, staged losses and fraud investigations and homeowners insurance fraud: what it is and how it's caught.

Last reviewed October 10, 2026

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Related terms

Exclusion A policy provision that removes coverage for a stated cause, type of loss, property or circumstance that the coverage would otherwise reach. Moral hazard The risk that holding insurance leads someone to cause or inflate a loss, or to take less care, because the insurer rather than the owner bears the cost. Mortgagee clause The policy condition that gives the lender its own right to be paid for dwelling losses and protects that right even when the owner's claim is denied. Named insured The person or people listed on the declarations page as the policy's owner, who hold the contract rights and receive notices and claim payments. Anti-concurrent causation clause Exclusion wording that denies a loss whenever an excluded cause contributes, even if a covered cause also played a part or came first.

Related guides

Arson, staged losses and fraud investigations How insurers and fire investigators test a suspicious fire or theft, what the intentional loss exclusion does, and what to do if your claim is investigated. Drones, firearms and other liability gray areas How homeowners policies treat hobby drones, guns, e-bikes and other gray areas: aircraft and intent exclusions, the business trap, and when to add coverage. Homeowners insurance fraud: what it is and how it's caught What counts as homeowners insurance fraud, hard versus soft fraud, how insurers investigate suspicious claims, and what an accusation means for you. Your kids, their friends and liability coverage Who is covered when your child breaks a window, hurts a classmate or is hurt at your house: the insured definition, intent limits and medical payments. Unmarried couples and co-owners on one policy A partner, friend or sibling who owns the house with you is not automatically insured. How to name co-owners, what roommates need and what happens in a claim. Vandalism and malicious mischief coverage Vandalism is covered on a standard homeowners policy, except in a dwelling vacant over 60 days or when an insured did it. The deductible swallows small claims.