diff --git a/images/hooks/pkg/hooks/install-vmclass-generic/hook.go b/images/hooks/pkg/hooks/install-vmclass-generic/hook.go
index 0991817f3e..17c957e07a 100644
--- a/images/hooks/pkg/hooks/install-vmclass-generic/hook.go
+++ b/images/hooks/pkg/hooks/install-vmclass-generic/hook.go
@@ -283,20 +283,11 @@ func addPatchesToCleanupMetadata(input *pkg.HookInput, vmClass *v1alpha2.Virtual
 		}
 	}
 
-	// Ensure "keep resource" annotation on vmclass/generic, so Helm will keep it
-	// in the cluster even that we've deleted its manifest from templates.
-	if _, exists := vmClass.Annotations[helmKeepResourceAnno]; !exists {
-		patches = append(patches, map[string]interface{}{
-			"op":    "add",
-			"path":  fmt.Sprintf("/metadata/annotations/%s", jsonPatchEscape(helmKeepResourceAnno)),
-			"value": nil,
-		})
-	}
-
 	annoNames := []string{
 		helmReleaseNameAnno,
 		helmReleaseNamespaceAnno,
 	}
+	hasHelmAnnotations := false
 	for _, annoName := range annoNames {
 		if _, exists := vmClass.Annotations[annoName]; exists {
 			patches = append(patches, map[string]interface{}{
@@ -304,9 +295,21 @@ func addPatchesToCleanupMetadata(input *pkg.HookInput, vmClass *v1alpha2.Virtual
 				"path":  fmt.Sprintf("/metadata/annotations/%s", jsonPatchEscape(annoName)),
 				"value": nil,
 			})
+			hasHelmAnnotations = true
 		}
 	}
 
+	// Ensure "keep resource" annotation on vmclass/generic, so Helm will keep resource
+	// in the cluster even that we've deleted its manifest from templates.
+	_, hasKeepResourceAnno := vmClass.Annotations[helmKeepResourceAnno]
+	if hasHelmAnnotations && !hasKeepResourceAnno {
+		patches = append(patches, map[string]interface{}{
+			"op":    "add",
+			"path":  fmt.Sprintf("/metadata/annotations/%s", jsonPatchEscape(helmKeepResourceAnno)),
+			"value": nil,
+		})
+	}
+
 	if len(patches) == 0 {
 		return
 	}
diff --git a/images/hooks/pkg/hooks/install-vmclass-generic/hook_test.go b/images/hooks/pkg/hooks/install-vmclass-generic/hook_test.go
index ad702941b2..9acf829bc4 100644
--- a/images/hooks/pkg/hooks/install-vmclass-generic/hook_test.go
+++ b/images/hooks/pkg/hooks/install-vmclass-generic/hook_test.go
@@ -318,17 +318,17 @@ var _ = Describe("Install VMClass Generic hook", func() {
 				})
 			})
 
-			When("vmclass/generic without keep-resource annotation is present", func() {
+			When("vmclass/generic without keep-resource annotation", func() {
 				It("should not change vmclass/generic and set values", func() {
 					prepareVMClassSnapshotGenericWithoutKeepResource()
 
 					values.SetMock.Return()
 					patchCollector.CreateMock.Optional()
-					patchCollector.PatchWithJSONMock.Return()
+					patchCollector.PatchWithJSONMock.Optional()
 
 					Expect(Reconcile(context.Background(), newInput())).To(Succeed())
 					Expect(patchCollector.CreateMock.Calls()).To(HaveLen(0))
-					Expect(patchCollector.PatchWithJSONMock.Calls()).To(HaveLen(1))
+					Expect(patchCollector.PatchWithJSONMock.Calls()).To(HaveLen(0))
 					Expect(values.SetMock.Calls()).To(HaveLen(1))
 				})
 			})