The question of the month deals with the water exclusion. This exclusion appears on property coverage forms and applies to losses caused by flood, surface water, water that backs up from a sewer or drain, and water under the ground surface that seeps or leaks into a building or other structure. Disputes often arise when this water exclusionary language is applied to particular loss situations.

For example, the meaning of flood, surface water, or water that backs up from sewers or drains has not gone unchallenged by insureds, and it has not even met with unanimous agreement among insurers. Another example is the distinction made by some between damage caused by water as a liquid and water that has been frozen into ice. And, as yet another example, was the damage even caused by water or by some other consequence?

For information on the water exclusion and legal decisions on its application, link onto the designated article in the FC&S Bulletins.

The Dec Page also presents recent court decisions on privacy claims and on workers compensation claims. The privacy claim revolves around the CGL form and the Telephone Consumer Protection Act (TCPA) that is meant to protect one's privacy from being violated through the use of computers, telephones, or faxes. The workers comp claims pertain to the meaning of the “arising out of employment” clause that serves as the starting point in the consideration of workers comp payments.

Also in the Dec Page is information on identity theft and methods that consumers can use to protect themselves against this growing criminal enterprise.

Questions and Answers

There is insufficient coverage for business personal property, so could plaques inscribed with members' names be considered fine arts and thus given this additional coverage? See Fine Arts Does Not Include Wall Plaques. An insurer denies business income coverage when a hurricane results in a power outage as well as the building's roof being blown off. See Concurrent Causation Language Does Not Exclude Windstorm Loss.

A roof is removed for repairs, and a rainstorm damages property in the building. See Roof Removed for Repairs Is Not Damage.

Ideally, flood coverage and a difference in conditions (DIC) policy should work together to provide maximum coverage, but this is not always the case. See Flood Policy and DIC Policy. A condominium building fire results in asbestos dust covering an HO-6 insured's personal property. Which policy covers this clean-up? See Asbestos Dust Removal under a Condominium Policy. Interpretation of absolute pollution exclusion in a homeowners policy depends upon the jurisdiction. See Carbon Monoxide Poisoning Covered?

PAP—January 2005 Edition

This month we continue our update of the January 2005 edition of ISO's Personal Auto Policy (PAP) and its impact on various coverages. The first is the Miscellaneous Type Vehicle Endorsement, which is used to insure motor homes, motorcycles, golf carts, ATVs, and dune buggies. See Miscellaneous Type Vehicle Endorsement. Named nonowned auto coverage is often a must for those who own no personal autos. See Named Nonowner Coverage for a discussion of endorsement PP 03 22 01 05. Snowmobiles have their own coverage endorsement that is attached to the PAP. See Snowmobile Endorsement for a discussion.

Two states that have a no-fault program in place are the subject of these articles: Personal Injury Protection—Florida, and Personal Injury Protection—Kansas.

Articles of general interest have been reviewed and include new material. Is it possible for an insured to make a claim for loss to a vehicle that the insured knows is stolen (and, in fact, might even have been the thief)? See Insurable Interest in Stolen Autos;  Is this a livery usage, and therefore excluded? See Car Pools for a discussion, including several court cases that address this topic.

Commercial Liability Umbrella Policy Revised

The Insurance Services Office (ISO) has revised the commercial liability umbrella coverage form, CU 00 01, with an edition date of December 2004. THis dscussion offers a general overview of the revised CU 00 01 with an analysis of the coverages, exclusions, conditions, and definitions in the form. See Commercial Liability Umbrella Policy.