Under what condition might Joe's insurer refuse to make a full payment after his shop was vandalized?

A situation in which an insurer might refuse to make a full payment after a shop has been vandalized is often linked to the condition of vacancy. Insurance policies typically contain specific clauses regarding the occupancy status of the insured premises. If a property is considered vacant for a certain period—usually defined as not having any occupants or business activity happening—the insurer may limit coverage or refuse payment for claims such as vandalism.

When a property is vacant, insurers often perceive it as a higher risk for loss. This could result in weaker or no protection under the terms of the policy, which may specifically state that coverage is reduced or excluded for losses occurring in vacant buildings. Thus, if it is determined that Joe's shop was vacant at the time of the vandalism, the insurer has a valid basis to limit or deny full payment for the damages incurred.