The insured condo building is covered for equipment breakdown form EB 00 20 01 13. There was an electrical event that damaged the building's electrical systems. In addition to direct damage to the distribution equipment, some of the wiring in the building was damaged as well. The policy identifies what is "covered equipment" and what is not. The policy states under what is not included, in section (10) is "Felt, wire, screen, die . . . nonelectrical cable, . . . or any other part or tool subject to periodic replacement." My question is, does this exclude coverage for the damaged wiring in the building?
This particular section (10) seems to be addressing only parts and tools that are subject to periodic replacement. Also, since this provision also specifies, includes "nonelectrical cable" then "electrical cables" are covered. Many larger electrical "wires" are referred to as "cables." Given the above, is the intent of this language to exclude all wiring in a building, or just wire that is part of a part of tool and subject to periodic replacement. It would seem counterintuitive for the policy to cover electrical equipment that runs a building but exclude the wire that connects the various pieces of electrical equipment. Please give me your opinion.
On a related topic. The ordinance and law coverage in this same policy appears to cover the wire, if it must be replaced due to code. Please let me know if you agree.
Michigan Subscriber
Since the electrical cable (wire) is connected to the electrical system that is used in the transmission or utilization of energy, it would be covered equipment identified in 6.a.(2). The fact that large electrical wires are called "cables" does not affect coverage for them; there are likely several wires within the cables.
Since the electric wire is covered equipment, it would also qualify for ordinance or law coverage.
The items listed in 6.b. (10) would appear to be nonconnected items that could be covered under business personal property in the commercial property coverage part. Periodic replacement is for things that are used constantly, like brake pads or fan belts, that wear down over time and need replacing every now and then to ensure safe and efficient operation.