3.3 - Non-Standard Perils Flashcards
Non-standard Perils - 1. Wildfire
wildfire is defined as: an uncontrollable or destructive fire, esp. in a forest
-wildfire falls within the fire peril insured against under a property policy, so it is covered whether the property is insured against named perils or all risks
Non-standard Perils - 2. Hurricane
-falls within the windstorm or hail peril and are thus covered whether the property is insured against named perils or all risks
Non-standard Perils - 3. Tornado
-falls within the windstorm or hail peril and are thus covered whether the property is insured against named perils or all risks
Non-standard Perils - 4. Collapse
-not a named peril, no coverage under named-perils form
-common scenario is the collapse of a roof due to snow load
-or a building of faulty design or workmanship that collapses under its own load - this is not covered because faulty design and workmanship are excluded
-if collapse is directly caused by a named peril such as fire, then the resultant damage is covered
-loss caused by collapse is covered under an all-risks form because it is not specifically excluded
Non-standard Perils - 5. Accidental Breakage of Property
All-risks form only:
- accidental breakage of property other than Glass Breakage - such as a TV screen. Covers breakage of Personal property that is not fragile or brittle and caused by any sudden and accidental event
Excluding:
>for breakage of fragile or brittle articles unless caused by a specified peril, accident to a land vehicle, watercraft, or aircraft, or theft or attempted theft
>to personal property undergoing any process or while being worked on, where the damage results from such process or work, but resulting damage to other property is insured
Non-standard Perils - 6. Earth Movement
-all earth movement perils are not covered under named perils nor all risks, but loss or damage due to fire that results from earth movement is covered
-IBC form IBC 1149 EQ Endorsement, covers these perils, excluding LoD directly caused by tidal waves; damage inside the building caused by windstorm, hail or coincidental rain or snow; and EQs that occur before the endorsement takes effect or after it expires. This has its own higher deductible, which may be expressed as dollar amount or a percentage of the value of the insured property.
Earth Movement
A general term that includes earthquake (earth movement due to a tectonic event), landslide (earth movement due to instability in the soil or a rock slope caused by water saturation or vibrations), snowslide (ex. avalanche), and volcanic eruption, sinkhole, among other phenomena
Non-standard Perils - 7. Sewer Backup
-damage caused by the backing up or escape of water from a sewer or septic tank is excluded from both named perils and all risks forms
-sewer backup is backing up of sewer drains within the dwelling without any external flooding
-flooding means if flood waters reach any portion of the insured’s premises.
-backing up of sewers directly or indirectly caused by flood is considered flooding and not covered under the SBU endorsement
-coverage under IBC 1142 Limited Sewer Backup endorsement. “limited” as it excludes coverage if the sewer drains backup within 72 hours before, during, or after flood waters reach the insured’s premises
-sewer backup can be caused by:
>flooding outside the dwelling overwhelms the municipal sewer system
>no flooding, but sewer lateral becomes blocked by tree roots
>materials from nearby road construction clog the local sewer system, causing backup even after normal rainstorm
-doesn’t matter where or why sewers backed up, coverage applies as long as flood waters not present or within 72 hours either before or after
Non-standard Perils - 8. Sump Pump Failure
-damage caused by backing up or escape of water from a sump pump system or by ground water or the rising of the water table is excluded from both named perils or all risks forms
-coverage for LoD due to sump pump failure under endorsement IBC 1142 Limited Sewer Back up Endorsement, the coverage is the same as for sewer backup
-how quickly ground water penetrates a basement can be affected by:
>soil type
>pressure from the water table
>quality of the foundation’s waterproofing
-failure of the sump pump perhaps due to breakdown or inadvertently disconnecting power to the sump pump will eventually allow ground water into the dwelling basement
Non-standard Perils - 9. Flood
-IBC Homeowners comp form - “Flood” mean waves, tides, tidal waves, tsunami, dam breaks, seiche, or the rising, the breaking out, or the overflow of any body of water or watercourse, whether natural or human-made. More generally, loosely applies to any accumulation of large amounts of water in a dwelling.
-Some of these are covered, some are not:
>NOT - pipe in dwelling bursts, toilet overflows, dishwasher hose breaks, sewer backup, sump pump malfunctions (not covered) and any of these causing water accumulation
>YES (not insured peril under named perils or all risks) - river overflows, severe rainstorm, hurricane, EQ causes tsunami
-Flood added by IBC 1148 Extended Water Endorsement - this covers both Flood and SBU, so if this one purchased, IBC 1142 Limited SBU End. does not need to also be purchased.
>IBC 1148 Extended Water Endorsement also provides coverage for damage caused by flood, ground water, rising of the water table, and surface water. Also removes the limitation on SBU losses that occur within 72 hours of a flood
2 flooding types
- Fluvial flooding - overflow of a river
- Pluvial flooding - flooding caused by rain
Non-standard Perils - 10. Ice Damming
-damage caused by the entrance of water into the dwelling through the roof due to ice damming (accumulation of snow or ice on the roof or eavestrough) is excluded whether coverage is for named perils or all risks
-damage is excluded because the aperture through which water enters the dwelling was not created by a named or a specified peril other than water damage
-coverage can be added IBC 1144 Ice Dam Endorsement - note nothing to do with a river dammed by ice chunks creating a flood
Non-standard Perils - 11. Water Seepage
**NOT COVERED
-property insurance is intended for sudden and accidental (fortuitous) events. Continuous or repeated seepage or leakage of water is thus considered a maintenance issue - NOT INSURABLE
Examples:
> water leaking via a leaking roof
> water leaking through the walls due to leaky plumbing
> water seeping into the basement via foundation, basement walls, or basement windows
Non-standard Perils - 12. Mould and Wood Rot
-damage caused by rust or corrosion, wet or dry rot, and fungi, spores, or mould is excluded whether coverage is for named perils or all risks
- such damage is, however, covered if it directly results from an insured peril - example, burst pipe within the walls causing mould and wood rot damage is covered, has to be sudden, not leakage over time continuously or repeatedly
Non-Standard Perils List
- Wildfire
- Hurricane
- Tornado
- Collapse
- Accidental Breakage of Property
- Earth Movement
- Sewer Backup
- Sump Pump Failure
- Flood
- Ice Damming
- Water Seepage
- Mould and Wood Rot
