Flood Definition Clarified

A Texas subscriber recently asked the following question:

A commercial endorsement defines "flood" as follows:

A general and temporary condition of partial or complete inundation of two or more acres of normally dry land or of two or more properties (at least one of which is your property) from

b. Unusual or rapid accumulation or runoff of surface waters from any source Insured had building water intrusion from surface runoff ofless than two acres of water inundation of normally dry land, but another property not adjacent or contiguous—not directly connecting or neighboring but several properties away from insured—also sustained dwelling loss by runoff ofwater from the same storm. To qualify as flood, do the two properties that sustain damage need to be connected properties or directly next to each other?

ANSWER: Unfortunately, the definition does not make it clear whether the properties must be connected. Our inclination is that they do not need to be adjacent because the definition does not say so. However, that leaves a lot up to interpretation, such as how far away can two properties be to qualify? Read More

Physicians and Surgeons Equipment Coverage Form

Three basic categories of property are insured under the Physicians and Surgeons Equipment Coverage Form, CM 00 26 01 13: professional medical, surgical, and dental equipment; office equipment; and the tenant-insured's interest in improvements and betterments. As with the rest of the commercial inland marine program of the Insurance Services Office, the property is insured on an open perils basis, subject to the exclusions listed on the form. Read More