Loss of Natural Gas From Cracked Pipe

Our homeowners customer recently discovered that the pipes carrying natural gas under his patio had broken down and natural gas was escaping. The gas service has since been turned off and the insured has been forced to move into a motel until the service is restored.

We have three questions regarding this situation. Is the natural gas covered property? Is the dollar value of the lost gas a covered loss? And is the insured's additional living expense covered?

Kansas Subscriber

Assuming that coverage for personal property is on a named perils basis in this case, there is no coverage for the lost gas. This is true even though the natural gas, having passed through the meter that measures usage, became personal property of the insured. The peril of accidental discharge from within a plumbing system applies only to the escape of water or steam. Consequently, the insured's additional living expense is also not compensable.