The Causes of Loss—Special Form, CP 10 30 10 12, states, “Covered Causes of Loss. When Special is shown in the Declarations, Covered Causes of Loss means direct physical loss unless the loss is excluded or limited in this policy.”

The policy also contains a vacancy provision, which reads as follows:

We will not pay for any loss or damage caused by any of the following, even if they are Covered Causes of Loss:

(d) Water damage

The policy's vacancy permit contains the following language:

A. The Vacancy Loss condition does not apply to direct physical loss or damage:

1- At the locations: and

2- During the Permit Period

Shown in the Schedule or in the Declarations.

B. This Vacancy Permit does not apply to the Excepted Causes of Loss indicated in the Declarations or by an “X” in the Schedule. No “X” in schedule.

The policy also includes the Changes—Fungus, Wet Rot, Dry Rot and Bacteria endorsement, CP 04 31 04 02, which excludes coverage.

The policy also contains the Vacancy Permit Endorsement, CP 04 50 07 88, which excepts the Cause of Loss of Sprinkler Leakage. It also says, “This Vacancy Permit does not apply to the Excepted Causes of Loss indicated in the Declarations by an 'X' in the schedule.”

Are the water and mold losses covered? Is this a water loss or frozen pipe? The proximate cause of loss is a frozen pipe, but the damage was done by water, which is excluded. However there is no concurrent causation wording in the endorsement.

Connecticut Subscriber

What you describe would fit under the sprinkler leakage cause of loss excluded in the vacancy provision, which would not be removed by the vacancy permit because choosing sprinkler leakage in the schedule excepts it.

The endorsement for fungus changes does not exclude that cause of loss from coverage, or at least the standard ISO form does not. This endorsement allows the limit to be changed, allows for application to separate premises or locations, and allows a change in the number of days for business income and extra expense coverage.

Fungus is excluded on form CP 10 30, but an additional coverage allows for fungus coverage if the fungus results from a specified cause of loss. Leakage from fire-extinguishing equipment is a specified cause of loss, so the mold damage should be covered (up to the limited amount available from the additional coverage and reduced by 15 percent as indicated in the vacancy provision).

Whether considered sprinkler leakage or water damage, neither would be covered due to the terms of the vacancy provision.