September 2010 Dec Page

Question of the Month

A standard feature of property insurance forms is the exclusion of various categories of loss associated with water. The water exclusion clause in the commercial property program of the Insurance Services Office (ISO) and in the ISO homeowners policy excludes loss caused by flood, surface water, water that backs up from a sewer or drain, and water under the ground surface. The language of the water exclusion clauses has raised many questions and has been the source of many coverage disputes between the insured and the insurer.

For example, how is the water exclusion affected by the anti-concurrent causation clause? What is the definition of surface water? Is there any difference in how the water exclusion applies when it comes to damage caused by water occurring in a natural state and damage caused by water directed by artificial means? Does the exclusion recognize any distinction between water and ice? This article answers these questions and offers several court decisions to help understand the water exclusion and its application: Water Exclusion Clause.

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