September 12, 2016

Under the ISO policy, please provide policy interpretation to the water damage exclusion, page 10 of 20 in the HO2, Section 1 Exclusion 3:

3. Water Damage means:

Direct loss by fire, explosion or theft resulting from water damage is covered.

Please explain how theft might occur from water damage.

Louisiana Subscriber

While it sounds farfetched, it is easier than you think. The water exclusion is for flood, tidal wave, waves, surface water, and water under the ground exerting pressure on buildings, foundations, and the like. A gallon of water weighs roughly seven to ten pounds; moving flood water can easily break down doors, or even the fact that insureds are having to haul everything out on the lawn to try to dry it out makes it easy for items to be stolen. Therefore, loss by theft related to water damage is covered.

 

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