Insurer slaps vandalism label on water loss and prompts exclusion

Sean and Erika Sherwood are suing Farmers’ & Mechanics’ Mutual Insurance Company in federal court, alleging the insurer manufactured a cause of loss to trigger a vacancy exclusion and avoid paying out on a legitimate claim. The suit, filed on February 11, 2026, in the United States District Court for the Middle District of Pennsylvania, brings claims for breach of contract and bad faith under 42 Pa.C.S.A. § 8371.