I have a claim where a cast iron waste line broke and caused ensuing water damage to the building, which is insured under a CP 00 10 04 02 with a CP 10 30 04 02 causes of loss form.

The carrier denied the entire claim due to wear and tear and deterioration of the pipe. I believe the pipe is excluded, but the ensuing water damage should be covered.

Please help clarify this situation.

Massachusetts Subscriber

The water damage is covered, but the pipe damage is not.

The wear and tear exclusion (as well as the rust, corrosion, deterioration exclusion) on the Special Causes of Loss form (CP 10 30 04 02) does provide a coverage exception as follows:

“But if an excluded cause of loss that is listed in 2.d. (1) through (7) results in a 'specified cause of loss' or building glass breakage, we will pay for the loss or damage caused by that 'specified cause of loss' or building glass breakage.”

Water damage is included within the definition of “specified cause of loss.” Therefore, the pipe damage is not covered, but there would be coverage for the resulting water damage. There is also an additional coverage extension for tearing out property to get to the pipe.