Our insured, on an HO 00 03 10 00, had his home damaged during a recent thunderstorm.  Lightning hit his well pump, and wind blew a tree down onto his house.  The company says these are two separate occurrences, and has applied two deductibles.  We question if this is two occurrences, or one occurrence with two perils.

New Jersey Subscriber

A

Under section I, perils insured against, the policy states, "We insure against risk of direct loss to property described…"  Coverage is on an "open perils" basis—covered unless otherwise excluded.  Therefore, loss from thunderstorm, including its wind and lightning, is covered.  We might argue a case for two deductibles on an HO 2, where the separate perils of wind and lightning are listed, but not on the HO 3.

Further, the policy does not address loss to property on an "occurrence" basis.  "Occurrence" is defined only as it pertains to section II (liability) coverages.  Since the HO-3 is silent except as concerns excluded loss, the insured is entitled to the most favorable reading of the policy, and therefore one deductible is in order.

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