Summary: The first party property pollution exclusion found in the homeowners forms developed by Insurance Services Office (ISO) and by the American Association of Insurance Services (AAIS) has been broadened considerably in scope when contrasted with the original contamination exclusion found in marine, commercial property, and early homeowners forms. Depending upon individual insurance companies' claims practices, coverage is being denied for losses traditionally covered under open perils versions of the homeowners—ISO's special form HO 00 03 10 00, 2000 edition; or AAIS's form HO 0003 01 06 (2006). Whereas the original contamination clause was aimed at non fortuitous occurrences, the descendant of that provision, today's pollution exclusion as contained in current homeowners policies, specifically excludes claims involving pollutants, unless the loss itself was caused by an insured coverage C peril (i.e., fire, lightning, windstorm, hail, and other listed perils). The following discussion reviews the evolution of the property and liability pollution exclusions, examines ordinance or law coverage, and reviews some current legal thinking. The discussion concludes with a look at ISO's endorsement HO 05 80 10 00, which provides some coverage for certain of these exposures.

Topics covered: Evolution of the homeowners pollution exclusion Expanding the exclusion

The ISO 1991 homeowners pollution exclusion

The ISO 2000 homeowners pollution exclusion

The AAIS 1995 homeowners pollution exclusion

The AAIS 2006 homeowners pollution exclusion

Ordinance and law coverage and pollution What are “pollutants?”

Homeowners cases—contamination and pollution exclusions Limited pollution coverage—ISO endorsement HO 05 80

ISO endorsement HO 05 72

AAIS liquid fuel remediation coverage Conclusion