Question if an endorsement for backup of sewer and drain provides loss of income coverage.
We have an AAIS BOP-100, Ed 1.0 policy with a BP-330 Ed 1.0 Water Damage Coverage, Back Up Of Sewer And Drains endorsement. Our insured suffered water damage due to a backup of a drain. The endorsement says "We" pay no more than the "Limit" shown on the schedule above. The limit is $5,000, and the company is agreeing to pay this amount. The insured building is a rental property and due to the water backup, 2 ground floor apartments were flooded and ultimately were condemned for being unsanitary due to damage to the floor and drywall. The insured questioned if the loss of income coverage provided by the policy is available for the loss of income on the two apartments. Whereas the endorsement specifically provides $5,000 for the damage to building and contents it's silent on any other coverage. The policy has named peril coverage on Coverages Building, Contents and Loss of Income and contains an exclusion for water that backs up through sewer or drains. My question is, by paying for coverage on the backup of drains endorsement, is the loss of income coverage triggered because of a covered endorsement loss even though the policy coverage section doesn't show back up as a covered peril of the policy?
Pennsylvania Subscriber
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