ADDITIONAL EXCLUSIONS
The next group of exclusions in the ISO HO 2 and HO 3 is essentially the flip side of several of the exceptions to certain of the personal property named perils, and/or of certain of the Additional Coverages.
Collapse
The first of these exclusions is for loss involving collapse, except as is provided in the Additional Coverages peril of collapse. As discussed, the collapse coverage is essentially a named perils coverage, which, under the ISO HO 2 and HO 3 policies, requires an actual collapse of the building or parts of the building for coverage to arise. This collapse exclusion is also modified by an ensuing loss clause that provides that coverage exists for loss ensuing from an otherwise noncovered collapse if that ensuing loss is caused by a covered peril.
Freezing
The second of these exclusions is for freezing of a plumbing, heating, air conditioning, fire sprinkler system, household appliance or for discharge, leakage, or overflow from within the system or appliance caused by freezing. There are exceptions to this exclusion. This exclusion does not apply if the insured has used reasonable care to maintain heat in the building or has shut off and drained the water from the system or appliance. House Insurance Cost Estimator
As with the personal property named peril, plumbing systems and household appliances are defined as not including sump pumps or related equipment, roof drains, gutters, downspouts or similar fixtures or equipment. This is an example of an exclusion that is essentially the flip side of one of the personal property coverage named perils. Thus, the scope of coverage for the peril of freezing is essentially the same for the dwelling and other structures as it is for personal property.
Freezing end Thawing
The next exclusion precludes coverage for freezing, thawing, pressure, or weight of water or ice whether driven by wind or not to four categories of property:
- fences, pavements, patios, or swimming pools;
- footings, foundations, bulkheads, walls, or any other structure or device that supports all or part of the building or other structure;
- retaining walls or bulkheads that do not support all or part of the building or other structures; and,
- piers, wharves, or docks. (This exclusion also has some parallels to the subsurface waters portion of the water damage exclusion.)
The next exclusion in this group is for theft of construction materials and supplies from a dwelling under construction until the dwelling is finished and occupied. This exclusion is parallel to one of the exceptions to the personal property named peril of theft.
Vandalism and Malicious Mischief
The next exclusion is for loss caused by vandalism and malicious mischief, but only if the dwelling has been vacant for sixty or more consecutive days before the loss. This exclusion does not apply to dwellings in the course of construction. House Insurance Cost Estimator
Repeated Seepage or Leakage of Water
The next exclusion is for loss caused by constant or repeated seepage or leakage of water or steam over a period of weeks, months, or years from within a plumbing, heating, air conditioning, fire sprinkler system, or household appliance. This is a more specific example of the faulty, inadequate, or defective maintenance and neglect exclusions.
As made clear by the personal property coverage named perils, coverage exists if the personal property caused by accidental discharges of water from such systems, including those caused by freezing. Further, the freezing exclusion applicable to the dwelling and other structure coverages has exceptions that will permit some coverage.
The point here is that it is the insured's duty to maintain his or her property and to take reasonable steps to protect it from loss. Failure to correct such leaks over a period of weeks, months, and years renders such water damage nonaccidental, nonfortuitous, and hence, not covered.
Mold, Fungus, or Wet Rot
The next exclusion in this group is for loss caused by mold, fungus, or wet rot. As with personal property coverage, if the mold, fungus, or wet rot damage results from an accidental discharge and is not apparent to the insured because it is hidden, coverage will exist. This exclusion therefore is parallel to and consistent with the constant or repeated water leakage exclusion, as mold, fungus, or wet rot resulting from such constant or repeated water leakage is not covered.
Exclusions Subject to an Ensuing Loss Clause
The next group of exclusions is unified by a lengthy exception that is essentially parallel to the personal property accidental water discharge named perils, These exclusions are subject to an ensuing loss clause. These exclusions are:
- wear and tear, marring, and deterioration, which are all exampies of expected, nonfortuitous losses;
- mechanical breakdown, latent defect, inherent vice, or any other quality in property that causes it to damage or destroy itself (parallels the faulty, inadequate, or defective materials used in construction exclusion);
- smog, rust, dry rot, or other corrosion (parallels the maintenance exclusion);
- smoke from agricultural smudging or industrial operations (corresponds with the exception to the personal property named perils coverage for smoke);
- discharge of pollutants, unless the release of pollutants is caused by one of the personal property coverage named perils (pollutants is specifically and quite broadly defined in the policy);
- settling, shrinking, bulging, or expansion, including resulting cracking of bulkheads, pavements, patios, footings, foundations, walls, floors, roofs, or ceilings (this exclusion dovetails with the earth movement, subsurface water damage, freezing, and collapse exclusions);
- birds, vermin, rodents, or insects (which include termites). These exclusions are specific examples of failure to maintain; and,
- animals owned or kept by an insured.
I hoped these few posts could enlighten you about the exceptions and exclusions of insurance coverages. So you have to take note when you purchase your plan, and double check with your agent to make sure they are covering the needs you want. To learn more, you can get House Insurance Cost Estimator right away!
