Cause of loss form is Special CP 10 30 10/12. Insured carries $250,000 of contents coverage only. Insured carries a Commercial Property Enhancement Endorsement, which provides $25,000 of coverage for backup of sewers and drains. A backup did occur which required a plumber to tunnel 60 feet below slab to make the necessary repairs. Underground pipes are not covered property, but under Additional Coverage Extensions it says "if loss or damage caused by or resulting from covered water loss occurs we will also pay the cost tear to out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance escapes." It would appear based on this language that we would owe for the cost of the plumbing repairs, except for the repairs to the pipe itself?  Here is the endorsement.

 Virginia Subscriber

 Based on our review of the Commercial Property Enhancement Endorsement GLUK015(01/10), the coverage for back-up of sewers and drains does not have to occur from a problem with the sewer system from off the insured's property. The coverage applies if there is direct physical loss of or damage to Covered Property caused by or resulting from water that backs up from a sewer drain (from any cause). Therefore, the cost of the plumbing repairs, excluding the pipe, should be covered up to the $10,000 limit for backup of sewers or drains. (Note that the actual limit in the enhancement is $10,000 – not $25,000).