A large hailstorm and heavy rain resulted in substantial interior damage to a commercial building. Apparently hail stones clogged up the drains, causing the water to back up into the interior of the building, rather than the storm breaching the structure and allowing water to enter. Is this covered because “hail” was the proximate cause…
A squirrel entered a community center building that had just undergone a $2 million renovation. It either gnawed some wiring or otherwise came in contact with the electrical system, causing a major power surge. Three newly installed HVAC systems were severely damaged, along with parts of the boiler system. Estimated damage was $300,000. Is this…
We are all aware of the human tragedy involved in the landslide which buried homes in Darrington, Washington in March 2014. From the perspective of our industry, the first question is whether a “landslide” is covered by most homeowner policies. And, since this may have been more of a “mudslide” than a landslide, is it…
Commercial insurers have increasingly incorporated provisions into their coverage forms and/or endorsements that can create significant coverage gaps when property is insured on a blanket basis. The use of a margin clause places a cap on how much an Agreed Value option will pay on a blanket policy. In addition, a margin clause also functions…
An insured’s party guest wore spiked high heels that left major dents in his home’s hardwood floors. The adjuster has denied the damage, citing the “marring” and “wear and tear” exclusion and suggests the insured file a claim against the guest’s policy. Does the ISO HO-3 homeowners form cover this type of loss?
ISO revised various General Liability coverage forms and endorsements effective April 2013 to reflect the changing needs of insureds and insurers. As with all program changes, the revisions include broadening of coverage, narrowing of coverage, and editorial changes that have no impact on coverage. Of course, it is the narrowing of coverage that always presents…
An insured buys gets a steal on a new building, paying $2.5M for a building with a replacement cost of $12M. The insured is concerned with protecting his investment rather than the cost to rebuild. What should the agent do?
The 2012 ISO Commercial Property filing changes both policy forms and endorsements. The forms have an edition date of October 2012. Since the changes include both broadening and reduction of coverage, agents need to be aware of any reductions to reduce the E&O exposure. This article will deal with all of the major changes.
What if snow that accumulates on a roof over time results in collapse? Could the carrier deny the claim, citing the “Neglect” exclusion in the HO policy due to the insured’s failure to have the snow removed? Below is an “Ask an Expert” question and the responses of our faculty members. As always, if you…
An insured suffered severe water damage to the interior of the second floor of a dwelling. A heavy rain storm caused water to accumulate on a second floor deck which seeped into the interior of the structure. The homeowners insurer has denied coverage based on the exclusion for “surface water.” The insured is arguing that…
