What happens if a loss is intentional according to insurance principles?

Under insurance principles, intentional losses are generally considered uninsurable because insurance is designed to protect against unforeseen events or accidents. Intentional acts are usually a result of someone's willful decision to cause harm, damage, or loss, which fundamentally contradicts the basic premise of insurance.

The principle of indemnity, which states that insurance is meant to restore someone to their financial position prior to a loss, does not apply when the loss is produced by the policyholder's deliberate actions. Allowing coverage for intentional losses would not only undermine the purpose of insurance but also encourage fraudulent claims and immoral behavior. Thus, insurers typically exclude such losses from coverage to maintain the integrity and stability of the insurance system.