Benefit of the Doubt Goes to the Insured

August 16, 2010

Under the building and personal property coverage form, if, after an inspection of the property, we cannot determine the cause of water intrusion or if water exclusions would apply, do we pay for the claim and give our insured the benefit of the doubt?

Wisconsin Subscriber

Yes, the insured should be given the benefit of the doubt. Under special causes of loss coverage, the insurer carries the burden of showing an applicable exclusion to coverage. If the insurer cannot show an applicable exclusion or limitation, the loss should be covered.