In the article Holding Water – Definitions Needed to Understand Water Losses, we defined terms commonly used in both the commercial property policy and the homeowners policy. However, just defining the terms isn't enough to fully understand the coverage. How the terms are used within the policy, and the surrounding language including exclusions and exceptions, is critical to determining whether a given loss will be covered. In this article, we review the terms as found within the ISO CP 10 30 Causes of Loss Special Form, and explain what that means for coverage.

Plumbing, Sewer, Drain

Plumbing

In the CP 10 30 Causes of Loss Special Form, the term plumbing is used in two sections; the first is in the water exclusion where water, other liquids, and materials that leak or flow from "plumbing, heating, air conditioning or other equipment (except fire protective systems) caused by freezing" is excluded. Coverage exists however if heat has been maintained in the building or the water was turned off and the lines drained. The second is in the definition of water damage within the "specified causes of loss" definition, which is defined as "(1) accidental discharge or leakage of water or steam as the direct result of the breaking apart or cracking of a plumbing, heating, air conditioning or other system or appliance (other than a sump system including its related equipment and parts), that is located on the described premises and contains water or steam."

Sewer

Sewer is used three times; first in the water exclusion for "(3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment" and then in the "special causes of loss" definition section defining water damage. In section c.(2) the form reads: