6.2 - First Group of Exclusions: Property Not Insured

Question 1

Exclusions - Property Not Insured

Answer 1

1. Buildings for Business or Farming
2. Property on Exhibit
3. Property Illegally Acquired or Subject to Forfeiture
4. Evidence of Debt or Title
5. Sporting equipment
6. Animals, Birds, or Fish
7. Property Lawfully Seized
8. Outdoor Radio and TV Antennae, Including Satellite Receivers

Question 2

Exclusions - Property Not Insured:
>Buildings for Business or Farming

Answer 2

-habitational insurance is more homogeneous and highly automated than commercial insurance and must be managed differently
-policy wordings for habitational risks must clearly not apply to business risks
-excluding buildings or structures used for business or farming helps ensure that insureds who present business exposures will be covered instead under commercial or farm policies more appropriate to those exposures

Question 3

Exclusions - Property Not Insured:
>Property on Exhibit

Answer 3

-part Two of Coverage C covers personal property while temporarily away from the premises anywhere in the world
-but property on exhibit faces unique exposures to loss not contemplated in the design of these forms
-generally exhibits can be insured under an exhibition floater (a separate policy or rider attached to the policy) at terms reflective of the risk and according to the circumstances

Question 4

Exclusions - Property Not Insured:
>Property Illegally Acquired or Subject to Forfeiture

Answer 4

-it would be against public policy to indemnify and insured for LoD to someone else’s property, if they steal property or buy it from someone who stole it, the insured has no legal claim to indemnify for its loss
-therefore, the policy excludes such loss
-the excluded acts are subjects of the Criminal Code and other laws
-in order for the insurer to prove that the possession is illegal, the insured must first be convicted under the law
-also against public policy to provide coverage for property that can be lawfully subject to forfeiture
-a common example of this involves an insured who illegally imports personal property into Canada by not declaring the goods in accordance with the Customs Act
-the property is subject to forfeiture for a period of six years after it is illegally imported into Canada

Question 5

Exclusions - Property Not Insured:
>Evidence of Debt of Title

Answer 5

-the exclusion for evidence of debt or title denies coverage for property that may be insured by other forms specifically designed for it

Question 6

Exclusions - Property Not Insured:
>Sporting Equipment

Answer 6

-sporting equipment, where the LoD is due to its use, is excluded
-this exclusions is not found in the HOs basic or broad form because Coverage C is not insured for all-risks
-equipment should be designed and manufactured for the types of stress it is meant to face
-the risk that it is defective or may sustain excessive stress or even abuse is more tha the premium contemplates
-the policy excludes loss arising from its use but covers other types of loss
-some insurers will insure against breakage while in use, often with a separate rider attached to the package policy

Question 7

Exclusions - Property Not Insured:
>Animals, Birds, or Fish

Answer 7

-animals, birds, or fish are excluded unless the LoD is caused by a specified peril other than impact by aircraft or land vehicle
-this exclusion replaces separate exclusions in the basic and broad forms under the impact by aircraft or land vehicle and theft perils

Question 8

Exclusions - Property Not Insured:
>Property Lawfully Seized

Answer 8

-most residential forms exclude loss to property lawfully seized or confiscated, especially if the policy covers loss by theft
-this exclusions supports public policy by denying coverage for property to which the insured has no legal claim
-but coverage is restored if the property was seized and destroyed by government agencies to prevent the spread of fire

Question 9

Exclusions - Property Not Insured:
>Outdoor Radio and TV Antennae, Including Satellite Receivers

Answer 9

-LoD to outdoor radio and TV antennae, including satellite receivers and their attachments, is not covered when caused by windstorm or hail; weight of ice, snow, or sleet, or collapse
-this exclusion relates to the vulnerability of antennae, towers, dishes, and the like to severe weather elements and their after-effect, such as strong winds, ice, snow and sleet can become very heavy and exert great pressure on such structures, causing damage and even collapse
-such damage could be attributed to design or installation flaws, well beyond the bound of a homeowners form
-this exclusion is found in the windstorm or hail peril in the homeowners basic form but reappears in the broad form and the comp form as a policy exclusion to ensure that loss is not covered under any of the policies