Insurance coverage for broken windows, TVs and products

Analysis brought to you by FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to learn how to find answers to YOUR coverage questions — click here! Question: I have a glass breakage claim to a residential home with a HO-3 Special Form policy. Based on our expert's report, the damage to the windows was the result of impacts that originated from the interior of the residence. The home is not vacant and is a primary residence. It is unknown as to what impacted the windows, but the damage came from impacts that originated from the interior of the residence. Is this covered?

— Virginia subscriber

Answer: Unless the cause can be determined, or at least be determined to be an intentional act, wear and tear, or earth movement, there are no exclusions that prohibit coverage. The aforementioned exclusions are the exclusions that would most likely exclude coverage other than war, nuclear hazard or governmental action, and those are a stretch. There is no exclusion for unknown cause of damage.  

Deer vs. television set

Question: Under the peril of "falling object" in the homeowners' policy, would there be any coverage for a damaged television caused by a deer that entered a house by jumping through and breaking a glass window?

— Kentucky subscriber

Answer: You have an interesting scenario. The policy doesn't define "falling object," and in such situations, it is customary to go to a standard desk reference. Merriam Webster Online defines "object" as "something material that may be perceived by the senses." Using this definition, the deer can be considered an object. "Fall" is defined as "to descend freely by the force of gravity, or to leave an erect position suddenly and involuntarily." This is where this claim becomes difficult; was the deer falling or jumping? "Jump" is defined as "to spring into the air: leap, especially to spring free from the ground or other base by the muscular action of feet and legs." It sounds like the deer truly jumped through the window, versus tripping over a chair on the patio and falling, although what really happened is a matter of fact. Therefore, if the deer jumped through the window, there is no coverage under the policy. Jumping animals are not a covered peril.

Is a window part of a wall for insurance purposes?

Question: We have a loss involving a broken window resulting from a heavy windstorm. Rainwater entered through the broken window and caused damage to personal property contained within the dwelling. Our policy says the following: "Perils Insured Against... (include) Windstorm or Hail... provided coverage if a wind causes an opening in a roof or wall." Do you consider a window to be a wall? We believe a window and a wall are essentially the same thing and that coverage would apply for the loss to the personal property in these instances. Do you concur? Thanks for your time.

— California subscriber

Answer: The intent of the policy language is to pay only for personal property when the outside of the dwelling has been breached; normally that's through the roof or wall. But a window is part of a wall, so we agree with you that the loss should be covered. Merriam Webster Online includes in its definition of wall: "something resembling a wall (as in appearance, function, or effect), especially: something that acts as a barrier or defense." Therefore the loss should be paid.

Coverage for salesperson samples

Question: The insured is a business that installs windows and doors, which includes a shop and a showroom. The displays that are in the showroom were damaged by fire. The insured used the displays for trade shows he goes to throughout the year. The insured's commercial property policy contains an additional $10,000 coverage for salesperson samples. He is going to max out his business personal property limit with just tools and office equipment. These displays are actually window and door units that are built in a custom display to show off the different layouts and manufactures. There are probably 15 or so displays, and most are 8 feet wide by 6 feet tall. These sit in the showroom roughly 50 weeks of the year and get taken to trade shows when needed. Since they were setup in the showroom during the fire, would these displays be considered salesperson samples or business personal property?

— Illinois subscriber

Answer: The endorsement for salesperson's samples states that coverage does not apply to property located in or on the building described in the declarations. Since they were set up in the showroom at the time of the fire (presumably in the building described in the declarations), they would not be covered by this endorsement. They could still be considered business personal property under the commercial property policy (unless wording in the policy otherwise excludes it). See also:

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