It is usually fairly simple to divide buildings and personal property into two separate categories for insurance purposes: covered property and property not covered. Most forms provide a list of the property that is not covered. A commercial property or homeowners' policy is probably going to cover the building or dwelling and personal property. Land and lawns will most likely fall in the "not covered" category.
So where do unauthorized satellite transmissions fall? Or how about electricity? Or, as some FC&S subscribers have inquired, phone time? Recently, an FC&S subscriber described his client's phone woes:
We have a client who suffered a lightning strike, which disabled the phone system. While the firewall was down, an outside party hacked into the system and used it to place a large number of metered, per-minute international long distance calls to the tune of $25,000.The client is insured under a Businessowners policy with an endorsement that provides up to $5,000 for computer fraud. The carrier has denied the claim for the phone charges on the basis the charges are not "covered property."
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