Legal Definitions - damn-fool doctrine

Definition: The principle that an insurance company can deny coverage if the insured engages in behavior that is so foolish that the insurer should not be responsible for the resulting loss.

For example, if someone intentionally sets fire to their own property, the insurance company may deny coverage because the insured's actions were so foolish that they should not be responsible for the resulting damage.

This principle is not always a perfect predictor of judicial decisions, but it can be effective in understanding outcomes. If the insured has enough resources to compensate for the damage caused by their foolish actions, the "damn-fool doctrine" may be used to deny coverage.

Damnification: Something that causes damage.

Damnify: To cause loss or damage to; to injure.