I work in insurance claims and I believe it would. Most homeowners insurance is “open peril” meaning for structures it covers everything that is not excluded…I don’t think any exclusions apply. Even an old/cheap named peril fire policy, I would argue for coverage under vandalism and vehicle (bulldozer). Seems like someone was tricked into the vandalism AFAIK.

It's called moving. It's a tricky thing to balance buying what you want and selling what you have in a short window. You can be mad at the shit market but don't take it out on people that managed to make it happen. That's just petty jealousy.