Mechanical or Electrical Breakdown Exclusion and Damage Caused by Voltage Regulator
An insured was driving his vehicle when he smelled smoke. He pulled over and found the voltage regulator had failed causing damage to the fuel gauge, temperature gauge, clock, and voltage regulator.
The policy language states:
EXCLUSIONS A. We will not pay for: 1. Loss or damage caused by insects or vermin; inherent defect; dampness, mildew, mold, rot or rust; temperature extremes; mechanical or electrical breakdown or failure; wear and tear; gradual deterioration; or loss of use.
We know the voltage regulator would not be covered as it is the cause of the loss, but would the resulting damage be covered?
Pennsylvania Subscriber
Unlike the language on the standard PAP (which uses the "damage due and confined to'' phrase), the specific exclusionary policy language you provide clearly states the insurer will not pay for loss or damage "caused by… mechanical or electrical breakdown or failure." Thus, if it has been established that the damage to the fuel gauge, temperature gauge, clock, and voltage regulator were all caused by the breakdown of the voltage regulator, then all of that damage should be excluded.