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Question: Our insured carries a Commercial Property Enhancement Endorsement, which provides $25,000 of coverage for backup of sewers and drains. The cause of loss form is Special CP 10 30 10/12. The insured carries $250,000 of contents coverage only.
A backup occurred, which required a plumber to tunnel 60-feet below slab to make the necessary repairs. Underground pipes are not covered property, but under Additional Coverage Extensions it says: “If loss or damage caused by or resulting from covered water loss occurs we will also pay the cost tear to out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance escapes.”
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