I have a HO claim where the RO system in the attic broke which caused water damage. The claim was covered except for food that spoiled while the insured was on vacation. The chest freezer stopped working because the water hit an outlet which caused the circuit breaker to trip. The carrier denied the food based on food spoilage not being a covered peril.
Arizona Subscriber
Food spoilage is not a cause of loss, it is a result. A peril is something that causes damage like fire or lightning. Food is personal property, and as such in order for the loss to be covered for damage to food it must be from a named peril as listed in coverage C. There is no named peril for a circuit breaker performing its job and turning off power to an appliance. It does not fit into Sudden And Accidental Damage From Artificially Generated Electrical Current, which is one of the named perils; you have a stoppage of power, not a sudden discharge.
However, the policy has the Special Personal Property endorsement, making coverage open perils. The power failure exclusion applies for loss of power generated from off of the residence premises, which is not what happened here. Something failed in the attic leading to water damage that tripped a breaker, turning off the power. There is no exclusion that fits this situation, therefore coverage should apply.
Editors note: We received a note from this subscriber a few weeks after answering the question. The subscriber provided our answer to the insurer who withdrew the denial and paid the claim after review of our answer.