House Insurance Cost Estimator - Additional Insurance Exclusions To Take Note

House Insurance Cost Estimator

ADDITIONAL EXCLUSIONS 

The next group of exclusions in the ISO HO 2 and HO 3 is essentially the flip side of several of the exceptions to certain of the personal property named perils, and/or of certain of the Additional Coverages.
 
Collapse
 
The first of these exclusions is for loss involving collapse, except as is provided in the Additional Coverages peril of collapse. As discussed, the collapse coverage is essentially a named perils coverage, which, under the ISO HO 2 and HO 3 policies, requires an actual collapse of the building or parts of the building for coverage to arise. This collapse exclusion is also modified by an ensuing loss clause that provides that coverage exists for loss ensuing from an otherwise noncovered collapse if that ensuing loss is caused by a covered peril.

Freezing

The second of these exclusions is for freezing of a plumbing, heating, air conditioning, fire sprinkler system, household appliance or for discharge, leakage, or overflow from within the system or appliance caused by freezing. There are exceptions to this exclusion. This exclusion does not apply if the insured has used reasonable care to maintain heat in the building or has shut off and drained the water from the system or appliance. House Insurance Cost Estimator

As with the personal property named peril, plumbing systems and household appliances are defined as not including sump pumps or related equipment, roof drains, gutters, downspouts or similar fixtures or equipment. This is an example of an exclusion that is essentially the flip side of one of the personal property coverage named perils. Thus, the scope of coverage for the peril of freezing is essentially the same for the dwelling and other structures as it is for personal property.
 
Freezing end Thawing 

The next exclusion precludes coverage for freezing, thawing, pressure, or weight of water or ice whether driven by wind or not to four categories of property:

• fences, pavements, patios, or swimming pools; 
• footings, foundations, bulkheads, walls, or any other structure or device that supports all or part of the building or other structure;
• retaining walls or bulkheads that do not support all or part of the building or other structures; and,
• piers, wharves, or docks. (This exclusion also has some parallels to the subsurface waters portion of the water damage exclusion.)

Theft of Construction Materials

The next exclusion in this group is for theft of construction materials and supplies from a dwelling under construction until the dwelling is finished and occupied. This exclusion is parallel to one of the exceptions to the personal property named peril of theft.

Vandalism and Malicious Mischief
 
The next exclusion is for loss caused by vandalism and malicious mischief, but only if the dwelling has been vacant for sixty or more consecutive days before the loss. This exclusion does not apply to dwellings in the course of construction. House Insurance Cost Estimator

Repeated Seepage or Leakage of Water
 
The next exclusion is for loss caused by constant or repeated seepage or leakage of water or steam over a period of weeks, months, or years from within a plumbing, heating, air conditioning, fire sprinkler system, or household appliance. This is a more specific example of the faulty, inadequate, or defective maintenance and neglect exclusions. 

As made clear by the personal property coverage named perils, coverage exists if the personal property caused by accidental discharges of water from such systems, including those caused by freezing. Further, the freezing exclusion applicable to the dwelling and other structure coverages has exceptions that will permit some coverage.
 
The point here is that it is the insured's duty to maintain his or her property and to take reasonable steps to protect it from loss. Failure to correct such leaks over a period of weeks, months, and years renders such water damage nonaccidental, nonfortuitous, and hence, not covered.

Mold, Fungus, or Wet Rot
 
The next exclusion in this group is for loss caused by mold, fungus, or wet rot. As with personal property coverage, if the mold, fungus, or wet rot damage results from an accidental discharge and is not apparent to the insured because it is hidden, coverage will exist. This exclusion therefore is parallel to and consistent with the constant or repeated water leakage exclusion, as mold, fungus, or wet rot resulting from such constant or repeated water leakage is not covered.

Exclusions Subject to an Ensuing Loss Clause 

The next group of exclusions is unified by a lengthy exception that is essentially parallel to the personal property accidental water discharge named perils, These exclusions are subject to an ensuing loss clause. These exclusions are: 

• wear and tear, marring, and deterioration, which are all exampies of expected, nonfortuitous losses;
• mechanical breakdown, latent defect, inherent vice, or any other quality in property that causes it to damage or destroy itself (parallels the faulty, inadequate, or defective materials used in construction exclusion);
• smog, rust, dry rot, or other corrosion (parallels the maintenance exclusion); 
• smoke from agricultural smudging or industrial operations (corresponds with the exception to the personal property named perils coverage for smoke); 
• discharge of pollutants, unless the release of pollutants is caused by one of the personal property coverage named perils (pollutants is specifically and quite broadly defined in the policy); 
• settling, shrinking, bulging, or expansion, including resulting cracking of bulkheads, pavements, patios, footings, foundations, walls, floors, roofs, or ceilings (this exclusion dovetails with the earth movement, subsurface water damage, freezing, and collapse exclusions); 
• birds, vermin, rodents, or insects (which include termites). These exclusions are specific examples of failure to maintain; and, 
• animals owned or kept by an insured. 

I hoped these few posts could enlighten you about the exceptions and exclusions of insurance coverages. So you have to take note when you purchase your plan, and double check with your agent to make sure they are covering the needs you want. To learn more, you can get House Insurance Cost Estimator right away!
 

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Home Insurance Coverage Definitions - More Exclusive Damages

Home Insurance Coverage Definitions

Weather Conditions
 
This exclusion has a substantial qualification and is actually relatively narrow. This exclusion only applies if weather conditions contribute in any way with a cause of loss or an event excluded in any of the exclusions previously discussed to produce the loss. Let's try some illustrative examples. 

Weather conditions cause a power failure, resulting in loss to contents of refrigerators and freezers, The exclusion applies. Heavy rain causes a hillside to give way, resulting in a mudslide that damages your house or garage. The exclusion applies. Lighting causes a power failure that causes a sump pump to cease operating, resulting in backup or overflow of the sump. The exclusion applies. 

Acts or Decisions

 
The language of this exclusion tends to strike the average reader as, alternatively, nebulous or opaque. It states:
 
We do not insure for loss to property described in Coverages A or B caused by any of the following...
Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body.

The nebulous nature of this exclusion is underscored that there is little, if any, case law interpreting it. Thus, whether it would apply to a particular claim would depend on the facts of the claim and the plain language of the exclusion. Home Insurance Coverage Definitions

As a practical matter, when a policy provision has not been construed by courts, insurers are often reluctant to rely on such a provision as the basis for a denial of coverage, unless the insurer has other and stronger defenses to a claim.

Faulty, Inadequate, or Defective Maintenance or Construction 

This is the most important of the three categories of exclusions. The essential theme of this category is that coverage does not apply to losses that are the result of poor design, planning, siting, construction, materials, or maintenance. The message communicated by this exclusion is two-fold. First, if another person or third party causes the loss, the insured's remedy is to sue them, not to look to his or her own property insurance.

Second, if the cause of loss is the insured's own failure to maintain his or her property - too bad. This body of exclusions puts the burden on the insured not only to maintain his or her property to assure the existence of coverage, but also to take due care in assessing the quality of property before purchase and the competence of persons with whom the insured contracts to perform remodeling or reconstruction.

This would also exclude problems developing from do-it-yourself remodeling or construction projects where loss results from defective design, materials, or construction.
 
Under this exclusion lie four subcategories. The first precludes coverage for faulty, inadequate, or defective planning, zoning, development, surveying, or siting. In other words, the subcategory precludes coverage for errors by governmental bodies, real estate developers, and design professionals such as geologists, soils engineers, and architects. The purpose of this exclusion is to cause losses of this nature to be borne by the party whose errors or misjudgments are the cause of loss.

Problems that would fall under this exclusion could take years to develop, leaving the insured seemingly without remedy against the party at fault due to statutes of limitations. However, under the ensuing loss clause, if the nature of the damage caused by this category of exclusions is covered, coverage will exists. For example, a soils engineer's failure to identify an ancient landslide results in subsidence damage, no coverage exists. If there is subsidence damage that ruptures a gas line and the dwelling is destroyed by a fire, coverage would then exist.
 
The second of the four subcategories of this exclusions precludes coverage for faulty, inadequate, or defective ... design, specifications, workmanship, repair, construction, renovation, remodeling, grading, or compaction. There is some obvious overlap with this group of exclusions with the previous group, particularly with respect to design and specifications. This group of exclusions goes more to loss caused by age than the actual construction of the dwelling. Notably, this exclusion applies not only to loss arising from defective original construction, but also defective repair, remodeling, and renovation. Home Insurance Coverage Definitions

The presence of this exclusion is the reason to choose remodeling or repair contractors carefully, and to take care that if you do your own remodeling or repair work, it is done correctly and in compliance with building codes. The ensuing loss clause again provides an exception to this group of exclusions for ensuing loss by a covered peril. However, merely defective work will not result in coverage.

The third subcategory of these exclusions precludes coverage for faulty, inadequate, or defective, materials used in repair, construction, renovation or remodeling. There is some overlap between this subcategory and the previous subcategory. This exclusion focuses on loss caused by improperly chosen or defective materials, as opposed to defective performance of the work. The ensuing loss clause restores coverage for loss within this exclusion for ensuring losses that are caused by covered perils.

The fourth and final subcategory of this group of exclusions is for loss resulting from faulty, inadequate, or defective maintenance of part or all of any property whether on or off the residence premises. The ensuing loss coverage will restore coverage for ensuing losses caused by covered perils. 

We'll temporary end here. Next post, we'll continue to talk about additional exclusions. Remember, you can get Home Insurance Coverage Definitions to quickly learn more about insurance secrets.

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Insuring Your Home To Value - Exclusion Damages To Your Home

Insuring Your Home To Value 

Earth Movement

The earth movement exclusion is not limited to the peril of earthquake, but also includes:

• land shock waves, including tremors associated with volcanic eruptions;
• landslides, mudslides, and mudflow;
• subsidence or sinkholes; and,
• any other earth movement, including earth rising, sinking, or shifting (for example, due to variation or changes in the amount of subsurface water that causes soil to expand or contract).  

This exclusion applies regardless of whether the earth movement is the product of natural, human, or animal forces, unless fire or explosion results from the earth movement. Fire and explosion are referred to as ensuing losses for which coverage expressly exists.

Water Damage

Although coverage for accidental discharges or overflows of water from plumbing, air conditioning, sprinkler systems, or household appliances applies, there are many types of water damage beyond those categories. The water damage exclusions list those types of water damage that are not covered. 

The flood category includes not only floods, but other similar (and often overlapping) concepts such as: surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or rust driven by wind. Policies will often contain repetitive listings of substantially similar concepts to avoid claims in which, for example, a homeowner may stare a flood did not cause the damage but rather an overflow of water. The repetitive list is designed to cover these claims that seek to rely on trivial semantic distinctions to assert coverage for excluded perils.

Flood damage falls into the category of losses that are too predictable for insurance in the normal markets. Where floods have occurred, they will reoccur - it is only a matter of time. Flood plains are well-documented by the United States Army Corps of Engineers, including with historical records that permit a reasonable estimate of the frequency of flood in a given area. Insuring Your Home To Value

For coastal areas subject to hurricane flooding, similar informatton is available. Because the peril of flood is universally excluded, the Federal Flood Insurance Program was established. If you are in a flood area, your agent or broker can help you obtain a separate flood insurance policy.

The second category of excluded water damage losses is water or waterborne material (i.e., sewage) that backs-up through sewers or drains or which overflows or is discharged from sump pumps or related equipment. This is a long-standing exclusion that nonetheless comes to the unfortunate surprise of many policyholders each year. While such persons often have recourse against a governmental body or sewer/water agency in the event of such losses, the claims process against a governmental entity can be protracted and difficult. There is, however, something you can do to help prevent such losses. Consult a plumber. If your toilets and drain lines are not equipped with antiback-flow devices, get such devices installed.

The third category of excluded water-damage losses is subsurface water that causes damage by exerting pressure on or seeping or leaking through a building, sidewalk, driveway, foundation, swimming pool, or other structure. Problems of this nature are commonly the product of poor siting or construction. The policy excludes coverage for this category of damage because it will recur unless the fundamental problem that created it is corrected.
 
Finally, as with the earth movement exclusion, loss by fire, explosion, or theft that results from water damage is covered as an ensuing loss.

Power Failure
 
Under the ISO HO 3 policy, no coverage exists for power failure that originates away from the residence premises, unless such power failure results in a loss from a separate covered peril.

Neglect
 
Neglect is defined as the neglect of an insured to save and preserve property after the time of loss. When this exclusion applies, it should apply to preclude coverage for the amount of additional damage caused by the insured's neglect, unless the insured's neglect was the predominating or triggering cause of the loss in the first place. 

War

The war risk exclusion has been a fixture of insurance policies for generations. In light of recent events, questions have arisen whether loss due to acts of terrorism are subject to the war risk exclusion. The answer is: probably not. One of the subparagraphs of the war risk exclusion provides that war includes: undeclared war, civil war, insurrection, rebellion, or revolution. 

Undeclared war connotes military action by a foreign nation and probably does not reasonably embrace the concept of acts of terrorism. Acts of civil war, insurrection, rebellion or revolution conceivably could embrace acts of domestic terrorism, but only when committed by organized groups. Insuring Your Home To Value

Nuclear Hazard
 
This exclusion does no more than cross-reference another section that states that nuclear hazard is considered an uninsurable risk. The sole exception to this exclusion is direct loss by fire resulting from the nuclear hazard.
 
Intentional Loss
 
As a general concept, it should come as no surprise that a policy excludes loss arising out of any act an insured commits or conspires to commit with the intent to cause a loss. What may come as a surprise is that in the second paragraph of this exclusion, the policy provides that an intentional loss committed by any insured will result in the preclusion in coverage for all insureds. 

This precludes a so-called innocent co-insured from coverage when another insured commits an intentional loss. While the courts of the fifty states are split on this issue, the majority of jurisdictions hold that no coverage exists for innocent co-insureds for intentional acts of another insured.

Governmental Action

This exclusion precludes coverage for the destruction, confiscation, or seizure of a dwelling, other structures, or personal property by order of any governmental or public authority. There is a significant exception to this exclusion. When a governmental body acts at the time of a fire to prevent its spread, loss will be covered.

In practical terms, this exclusion prevents coverage when a government seizes property based on the arrest or conviction for certain crimes or offenses, such as drug related offenses.

Section 1: Concurrent Causation

The second group of exclusions applicable to the property coverages of homeowners policies consists of three categories that are of great importance. However, unlike the preceding nine exclusions, this group of three categories of exclusions is not made subject to the anticoncurrent causation language. Effectively, these exclusions are narrower than those we have just discussed.

There are a couple additional qualifications to note. First, these exclusions only apply to the dwelling and other structures coverages, not to the contents coverage. This further narrows the scope of these exclusions.
 
Second, if there is an ensuing loss to the dwelling or other structures by a covered peril for which coverage is not precluded by any other policy provision, that ensuing loss is covered.

We'll continue to talk about other insurance exclusion in the next post. Right now, you can get more info about  Insuring Your Home To Value to benefit yourself.

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