What action is typically not covered under insurance policies if committed by the insured?

Arson is typically not covered under insurance policies when committed by the insured because it is considered a willful act of destruction. Most insurance contracts have explicit exclusions for intentional acts that cause loss or damage. When an insured party engages in arson, they are deliberately setting fire to property, which contradicts the principle of indemnity — insurers are there to protect against accidental losses rather than to cover losses resulting from intentional actions. This is rooted in the ethical and legal framework that prevents individuals from profiting from their wrongdoing.

In contrast, other actions such as theft, accidental damage, or negligence may be covered under different circumstances. For instance, theft can be a covered peril, accidental damage may fall under a general property damage clause, and negligence might also be covered if it leads to unintentional damage to property. Arson stands apart as it reflects an intentional decision made by the insured that is outside the bounds of typical coverage.