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Question. We are a firm working for an insurer and handling a commercial property water loss occurring from overflow of a toilet. The insured made a claim for the increase in the water bill for the period of time that the water ran prior to discovery.

We have always considered this part of the personal property loss, as once the water passes through the meter, it becomes the insured's property. The insurer advised us to inform the insured that the increase in utility expense is not covered, in accordance with the policy CP 00 10 04 02, A. 2. Property Not Covered, h. Land, water, growing crops or lawns.

We believe the water the insured is referring to refers to bodies of water, not utility water.

I could not find any reference in my search to justify my prior interpretation or to refute the company's interpretation of water in the cited policy language. Can you assist?

— Iowa Subscriber

Answer. Because the policy does not specify a type of water that is to be considered property not covered, the insurer is justified in denying coverage under A.2.h. Even if it does become the insured's personal property after passing through the meter, it is still water and categorized as property not covered.

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Question. I have had two recent scenarios that involve an increased water bill following a covered loss. In both cases we have substantial increased water usage due to the break in a pipe that is covered. We have always presented this increased water bill as a loss of use claim for increased living expenses as the water is a utility. It has always been paid in the past but recently we have had two denials of coverage for this increased cost.

In both cases they are saying that the water falls under coverage C as personal property. Because there is an exclusion for water as personal property they are not covering the increased water bill. Again, we have always presented previous water usage and the increased usage and made a claim for an increase in living expenses. What is your thought on this?

— New Hampshire Subscriber

Answer. While loss of use is a broad coverage, the insured has to be displaced in order for it to come into play. Water is specifically excluded, and it is not part of coverage A or B. Under older ISO forms it was not excluded, but it is now. Your previous losses that were covered were likely on the old form, and the newer losses are falling under the newer form. The carriers are correct; there is no coverage for the loss of water.

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