Dry Rot, Mold, Mildew, Fungus

I've become a fan of the TV show Bar Rescue. A failing bar agrees to let a TV crew and an expert in bar operations in for a makeover.  I think its fun and it gets me thinking of stuff.A recent episode had the bar turned upside down (as always).  Then it was discovered that the support beams of the building were rotten.  The show made the claim that … [Read more...]

The "Not Covered" of Property Insurance

Here are the events usually not covered by property insurance:-Flood-Earthquake-Intentional Damage By You-Animals and InsectsYour agent can help you with the first two.Don't do the third.Frequent inspections for the last. … [Read more...]

Earthquake Excluded & Other Stuff Is Too

Almost all property insurance policies exclude earthquake. Coverage is available almost everywhere in the US - either through standard or specialty insurers.What is not commonly discussed is that the earthquake exclusion is broader than just earthquakes.The following are excluded in the same breath:landslide, mudflow, sinkhole, mine subsidenceland … [Read more...]

Bedbugs and Property Insurance

For some reason bedbugs are in the news now.  Apparently there is an epidemic of infestations.  (Perhaps there is just an epidemic of reporting of infestations - who am I to say?)If your place is plagued by pests, how does insurance respond?Short answer?  It doesn't.The standard home insurance policy excludes loss caused by insects.  That means … [Read more...]

Why Do Insurance Policies Include Exclusions?

Exclusions are a common bone of contention with insurance buyers. Reading some policies makes it seem like nothing is covered.Actually, I like exclusions. They tell me what I need to worry about.There are three reasons why something is excluded by an insurance policy:1) The issue is insured by a separate insurance policy. Auto accidents are … [Read more...]

Inherent Vice

Inherent vice is an object's tendency to deteriorate.Ray Burnham, in his most excellent, Burnham's Insurance Dictionary, uses examples of meat putrefying, iron rusting, and people aging.Property insurance almost always excludes inherent vice, though most policy forms do not use the term.The ISO property form excludes inherent vice with the … [Read more...]

Livery and Your Personal Auto Policy

Livery is carrying goods or people for a fee. There are insurance coverage issues to consider when a business uses a personal vehicle owned by an employee.  Most personal auto policies exclude coverage when the vehicle is used for livery.  The purpose of the exclusion is to remove coverage for a vehicle held out to the public as being for hire - a … [Read more...]

Why are Exclusions Excluded

A well written piece on exclusions - http://www.mynewmarkets.com/article_view.php?id=99788Scott Simmonds, CPCU, ARM, CMC"The Guy With the Big Insurance Brain"Providing Unbiased Insurance Assurance℠ … [Read more...]

Flood

I just realized that it has been some time since I talked about flood insurance. There are many new readers who may have missed past rants. Here goes...-Home insurance policies do not cover damage caused by a flood.-Business property insurance do not cover damage caused by a flood-The only way to find flood coverage (for most) is to get … [Read more...]

Impaired Property Exclusion – General Liability Insurance

You manufacture widgets. Your widgets go into another product - a blimb - made by your customer. One day your customer calls and tells you that you widgets were not up to spec and that he has had to spend $200,000 to remove the widget and fix it so his blimb worked. He wants you to pay the $200,000. You want your insurance to pay.Sorry. Not … [Read more...]