A contractor built a new inground pool for the insured. After the pool was installed, an underground leak was discovered in a water line between the house and pool after concrete walkways began to buckle. The adjuster denied coverage based on the earth movement and water damage exclusions. Is this correct?
A large, ornate wooden bowl was scheduled on the insured’s HO policy. The bowl was accidentally broken and the insurer denied the claim citing the exclusion for “breakage of art glass windows, glassware, statuary, marble, bric-a-brac, porcelains and SIMILAR FRAGILE ARTICLES.” Is a wooden bowl a “fragile” article? This article will discuss this issue, including…
A number of years ago, ISO added “concurrent causation” exclusionary wording to its personal and commercial lines property forms. This was done in response to several onerous court decisions that found coverage where none was intended. However, as sometimes is the case (e.g., with the pollution exclusion), this policy language itself can be interpreted onerously….
While it’s an unpleasant topic to consider, sometimes people pass away in their homes and their bodies are undiscovered for weeks. Decomposition can lead to decay and loss of body fluids. Similarly, the clean-up costs for firearms-related suicides can cost thousands of dollars. Are these clean-up and removal expenses covered by homeowners policies or is…
A boulder dislodged from a hillside and ended up inside a home at the bottom. Is this excluded as earth movement or would it be covered as a falling object or any other non-excluded peril under the HO-3?
Lease agreements can take many forms. One of the increasingly more popular ones is a triple net lease. While it has historically been used more often for the long-term lease of larger properties, it is showing up more and more often in 3-5 year leases of smaller properties, many insured under BOP’s. Here are some…
The Special Causes of Loss form (and most crime forms) excludes losses “where the only evidence of the loss or damage is a shortage disclosed on taking inventory.” In other words, if you conduct an inventory and find something missing, that doesn’t necessarily mean it was stolen. But what DOES it mean? In this article,…
A 17-store chain of restaurants were shut down recently by Hurricane Charley. Direct property damage was actually minor at all locations; however, an area-wide power outage resulted in several of them being closed for business for 5-7 days. The agent thinks they should have coverage for the loss of refrigerated property and the loss of…
If the volume of “Ask an Expert” questions we get is any indication, the “wear and tear” exclusion in auto and property policies–both personal and commercial lines–is one of the most misunderstood in insurance. Unlike the mechanical breakdown exclusion which can be subject to varying interpretations, this one is pretty clear. So, why is it…
A not-for-profit company leases a building from the state for $10 per year. The state self-insures this 50 year old building. If there is a loss to the building, the state would not likely repair it. The tenant would be looking for a new home at a greatly increased cost of rent. This insured is…
