My client experienced a loss due to a freeze-up of pipes at a property she owns. The single family house was rented to an individual for several years, with the tenant paying for all utilities, including electricity and heating oil. Apparently, the tenant stopped paying for oil delivery; this resulted in an empty oil tank and subsequent freeze-up and bursting of pipes in the plumbing system and ensuing water damage. My client was completely unaware of these events and only discovered the problem when she had the tenant evicted for nonpayment of rent several months later.

The policy in effect is DP 00 03 (o7 88). It excludes freeze-up claims unless ″you have used reasonable care to maintain heat in the building, or shut off the water supply″. Presuming these circumstances are accurate, if a tenant is responsible for supplying oil and fails to do so and a loss occurs, would the exclusion apply?

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