Following the litigation that ensued from Hurricane Katrina in 2005, the Insurance Services Office (ISO) introduced a water exclusion endorsement in 2008. When ISO revised its commercial property program in 2012 (effective this month), the water exclusion endorsement's provisions were incorporated into the ISO causes of loss forms.

A review of a question from an FC&S subscriber illustrates some differences between the pre-2008 water exclusion and the current wording in the 2012 editions of the ISO forms.

The insured in this scenario is a lumber company that was storing shingles at a leased location owned by the city. The city was working on the sewer system and caused a pipe under the insured's building to burst, blowing a hole in the cement floor. Water and sewage were discharged into the building and the surrounding outdoor lot. The city ordered the insured to immediately move the pallets of shingles outside. That way, the city could access and repair the broken sewer pipe, which was affecting a large portion of the city. The pallets were moved and set in the lot in the discharged matter.