April 29, 2015

Exclusion versus Named Peril

 Summary: Standard homeowners forms, like most property forms in current use, exclude all loss "caused directly or indirectly by any of the following . . . water which backs up through sewers or drains or which overflows from a sump." The 2011 HO 00 03 05 11 expands to include "water-borne material which backs up through sewers and drains." It also adds "which overflows or is discharged." And, "a sump pump or related equipment" now accompanies a sump. The policy language leading to this exclusion, "such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss," attempts to circumvent the doctrine of concurrent causation (for more information on this topic please see ( Concurrent Causation). However, in courts where sewage has been distinguished from water, the language appears to have been ignored. This article deals with different court interpretations of the exclusion. Though some of the cases cited are over twenty years old, all have been verified as good case law. Form HO 04 95 05 11 provides limited water back-up and sump discharge or overflow coverage.