We have an insured who carries a DP1 policy. Burglars break into the home causing forced entry and they steal the boiler. That causes ensuing water damage to the home. Is the ensuing water damage covered under a DP1 policy?
Connecticut Subscriber
Your policy excludes theft but does coverage damage to the building caused by burglars; that would be the forced entry, so that is covered.
Ensuing losses caused by acts committed in the course of vandalism and mischief are not covered if the property has been vacant for 60 days. The water damage is an ensuing loss to the theft, but it is also an ensuing loss to the vandalism that caused the forced entry and the removal of the boiler. Unless the property was vacant for 60 days or more, the loss should be paid.
Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.