| Q&A of the Week |
Theft Following Water Damage
An Louisiana subscriber recently asked the following question:
Under the ISO policy, please provide policy interpretation to the water damage exclusion, page 10 of 20 in the HO2, section 1 Exclusion 3
3. Water Damage means:
Direct loss by fire, explosion or theft resulting from water damage is covered.
Please explain how theft might occur from water damage.
ANSWER: While it sounds farfetched, it is easier than you think. The water exclusion is for flood, tidal wave, waves, surface water, and water under the ground exerting pressure on buildings, foundations, and the like. A gallon of water weighs roughly seven to ten pounds; moving flood water can easily break down doors, or even the fact that insureds are having to haul everything out on the lawn to try to dry it out makes it easy for items to be stolen. Therefore, loss by theft related to water damage is covered. Read More |
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| What's New This Week in FC&S |
Workers Compensation and Exclusive Remedy
Workers Compensation insurance stood for more than 50 years as the sole recourse of employees injured on the job. This "exclusive remedy" embodied in workers compensation statutes was designed to provide injured employees with a schedule of benefits in exchange for their giving up the right to sue the employer. Read More |
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| Litigation Watch |
The Meaning of "You"
A credit union brought an action for breach of contract against a general contractor alleging defective construction work, and the general contractor brought a third-party action against a subcontractor and the commercial general liability insurer. This case is America First Credit Union v. Kier Construction Corporation, 314 P.3d 1055 (2013).
In 2002, America First Credit Union (AFCU) and Kier Construction entered into a contract for Kier to act as the general contractor in the construction of a branch office for AFCU. Kier subcontracted with Broberg Masonry to supply and install manufactured stone veneer for the building. As part of the contract, Broberg was required to obtain a commercial general liability policy listing Kier as an additional insured. Read More
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| Fraud of the Week |
Insurance Policy Fraud – Washington
AMOUNT: $4,500
A licensed insurance producer who sold Allstate insurance at a Kennewick insurance agency pleaded guilty to misrepresentation in application for insurance in Benton County Superior Court. Read More
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| FC&S Ask the Experts |
Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you?
Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials).
Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.
Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here. |
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