A $7 million vandalism claim is at the center of a coverage fight between Fireman's Fund Insurance Company and a Michigan real estate investment firm.
Fireman's Fund filed suit on March 23 in the US District Court for the Eastern District of Michigan, seeking a declaratory judgment that it owes nothing to Canyon Park Capital, LLC under a commercial property policy. The dispute stems from a vandalism incident at a commercial building in Humble, Texas — one that the insurer says it learned about far too late.
The facts, as laid out in court filings, paint a picture of a property that quietly went dark. Canyon Park acquired the building in August 2021 through an entity called 3200 Houston, LLC. At the time, it was leased to Alorica, Inc., which operated an on-site call center there. The lease was set to run until January 2029.
But around May or June 2024, according to the filing, Alorica sent its employees home to work remotely — leaving the building effectively empty. Canyon Park did not inform Fireman's Fund that its tenant had vacated.
Then came the vandalism. On or about September 9, 2024, vandalism at the property was reported to the Houston Police Department. Copper wiring, building materials, and HVAC equipment were reported stolen by unknown suspects. No arrests were ever made.
What followed was a chain of delays. Alorica did not notify Canyon Park of the vandalism until no later than December 6, 2024, and simultaneously asserted its right to walk away from the lease. Canyon Park pushed back, arguing that Alorica was responsible for repairs and had breached the lease by waiting months to report the damage.
Yet despite knowing about the vandalism by December, Canyon Park waited until April 1, 2025 - nearly seven months after the police report - to notify Fireman's Fund.
The insurer says that delay was devastating to its ability to investigate the claim. By the time its adjuster gained access to the property on April 28, 2025, demolition and restoration work was already underway. The window to assess the vandalism damage had closed, the insurer alleges.
Fireman's Fund is leaning heavily on two provisions in its policy. The first is a conditional vacancy exclusion, which bars coverage for buildings left vacant - defined as 70% or more of rentable space not being actively used - for more than 60 consecutive days, unless the insurer is notified in writing before the 60th day. The second is the policy's requirement that the insured provide prompt notice of any loss. According to the filing, Canyon Park satisfied neither condition.
Adding another wrinkle, the insurer says it learned during its investigation that Alorica had filed its own claim with a separate insurer over the same vandalism event and had reportedly already received payment.
Canyon Park has demanded approximately $7 million - about $5 million in building damages and $2 million in lost rents - and continues to seek reconsideration of Fireman's Fund's October 2025 coverage denial.
The case has not been adjudicated, and Canyon Park has not yet responded to the filing. The allegations reflect only the insurer's position as presented to the court.
