From a record outbreak of tornadoes in April to a pre-Halloween snowstorm in the Northeast, 2011 saw its share of catastrophic weather events. The year also broke the record for billion-dollar disasters, a title previously held by 2008 with nine; 2011 brought twelve.

Usually, such disasters also result in localized or widespread power outages. Often, insureds do not suffer any direct damage but experience losses solely because of power outage or the resultant power surge when electricity is restored.

The latest editions of the ISO commercial property causes of loss forms contain utility services exclusions that preclude coverage for power or other utility failure that is supplied to the premises. The exclusions apply if the failure occurs away from the described premises or originates at the described premises but involves equipment used to supply the utility service to the premises from a source away from the described premises.

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