Section I Perils Insured Against

Section I Coverage C Personal Property

Section I Exclusions

Section I Conditions

Liability Coverages and Exclusions A-D

Exclusion E Coverages E. F and G

Section II Additional Coverages and Conditions

B. Coverage C – Personal Property We insure for direct physical loss to the property described in Coverage C caused by any of the following perils unless the loss is excluded in Section I – Exclusions.

1. Fire Or Lightning 2. Windstorm Or Hail This peril includes loss to watercraft of all types and their trailers, furnishings, equipment, and outboard engines or motors, only while inside a fully enclosed building. This peril does not include loss to the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening. 3. Explosion 4. Riot Or Civil Commotion 5. Aircraft This peril includes self-propelled missiles and spacecraft. 6. Vehicles 7. Smoke This peril means sudden and accidental damage from smoke, including the emission or puffback of smoke, soot, fumes or vapors from a boiler, furnace or related equipment. This peril does not include loss caused by smoke from agricultural smudging or industrial operations. 8. Vandalism Or Malicious Mischief This peril does not include loss caused by vandalism or malicious mischief to property arising out of or resulting from "home-sharing host activities".

Analysis

The personal property named perils have not received many changes. The section states that coverage applies from any of the listed perils unless it is excluded under the exclusions section. Fire or lightning are the first named perils, and as such, there is no explanatory language or exceptions, making coverage particularly broad. If personal property is damaged by fire or lightning, there is coverage.

Windstorm

Windstorm or hail are next, and the policy indicates that this includes damage to watercraft of all types and their trailers, furnishings, equipment, and outboard engines or motors only while in a fully enclosed building. Watercraft that is out on the water is naturally exposed to the elements and hazards, and so is not covered under the homeowners policy unless it is damaged while within a building. A further exclusion is for damage from rain, snow, sleet, sand or dust while the property is inside a building unless the direct force of wind or hail has damaged the building and caused an opening in a roof or wall that then allows the elements in that damage the watercraft. Therefore, watercraft and its furnishings, trailers, etc. are covered when they are inside a building and wind or hail damages that building which then allows weather elements to enter the building and damage the watercraft. Otherwise, there is no coverage for wind or hail damage to watercraft and its equipment.

Explosion

Explosion, riot, or civil commotion are the next named perils, and like fire or lightning, there are no exceptions or exclusions added, making these broad coverages. Since the terms are not defined, if any doubt should arise, then a standard dictionary definition should be used. Merriam Webster online defines explosion as a large-scale, rapid, or spectacular expansion or bursting out or forth, which would include everything from the water heater exploding to a gunshot. Riot is defined as a violent public disorder, specifically: a tumultuous disturbance of the public peace by three or more persons assembled together and acting with a common intent. Civil commotion isn't defined, but commotion is defined as a condition of civil unrest or insurrection, and insurrection is defined as a usually violent attempt to take control of a government. What actually damages the personal property needs to be looked at in light of these descriptions.

Aircraft

Aircraft are a named peril, and this includes self-propelled missiles and spacecraft. If a satellite falls out of the sky and crashes through an insured's roof and damages the sofa and coffee table, that would be covered under the peril of aircraft. Like some other perils, there are no exceptions or exclusions.

Vehicles

Vehicles are another extremely broad named peril as there are no exceptions or exclusions. Any damage to personal property caused by a vehicle would be covered under the homeowners policy. So if a vehicle drives through the wall and damages the sofa, or the insured backs over a child's bicycle, those losses would be covered since a vehicle was the cause of loss. Remember that vehicles are a peril, and are not covered property.

Smoke

Smoke is listed as a specific cause of loss and along with sudden and accidental damage from smoke includes damage from the emission or puffback of smoke, soot, fumes, or vapors from a boiler, furnace or related equipment. A puffback is when the oil in a burner doesn't ignite right away and fumes build up in the furnace. Then these fumes cause an explosion inside the burner chamber, which vaporizes and sends soot throughout the home covering everything in oily soot. Puffbacks are messy and common in the fall when the heat is turned on for the first time.

Vandalism

Vandalism and malicious mischief are the next perils, and these perils have been updated in the 2022 edition. In the earlier edition there were no exceptions or qualifying language. Newly added to the 2022 edition is the statement that this does not include loss by vandalism or malicious mischief to property that arises out of or results from "home-sharing host activities". As has been previously discussed, any time strangers are allowed to stay in the home, the chances of damage increase simply because the visitors are strangers to the insured and even if the home-sharing company does a background check, not everything is on record.

9. Theft

a. This peril includes attempted theft and loss of property from a known place when it is likely that the property has been stolen. b. This peril does not include loss caused by theft:

(1) Committed by an "insured"; (2) In or to a dwelling under construction, or of materials and supplies for use in the construction until the dwelling is finished and occupied; (3) From that part of a "residence premises" rented by an "insured" to someone other than another "insured"; (4) That occurs off the "residence premises" of:

(a) Trailers, semitrailers and campers; (b) Watercraft of all types, and their furnishings, equipment and outboard engines or motors; or (c) Property while at any other residence owned by, rented to, or occupied by an "insured", except while an "insured" is temporarily living there. Property of an "insured" who is a student is covered while at the residence the student occupies to attend school as long as the student has been there at any time during the 90 days immediately before the loss; or

(5) If such loss arises out of or results from "home-sharing host activities".

10. Falling Objects This peril does not include loss to property contained in a building unless the roof or an outside wall of the building is first damaged by a falling object. Damage to the falling object itself is not included. 11. Weight Of Ice, Snow Or Sleet This peril means weight of ice, snow or sleet which causes damage to property contained in a building. 12. Accidental Discharge Or Overflow Of Water Or Steam

a. This peril means accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or from within a household appliance. b. This peril does not include loss:

(1) To the system or appliance from which the water or steam escaped; (2) Caused by or resulting from freezing except as provided in Peril Insured Against 14. Freezing; (3) On the "residence premises" caused by accidental discharge or overflow which occurs off the "residence premises"; or (4) Caused by mold, fungus or wet rot unless hidden within the walls or ceilings or beneath the floors or above the ceilings of a structure.

c. In this peril, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment. d. Section I – Exclusion A.3. Water, Paragraphs a. and c. that apply to surface water and water below the surface of the ground do not apply to loss by water covered under this peril.

13. Sudden And Accidental Tearing Apart, Cracking, Burning Or Bulging This peril means sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water. We do not cover loss caused by or resulting from freezing under this peril. 14. Freezing

a. This peril means freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, but only if you have used reasonable care to:

(1) Maintain heat in the building; or (2) Shut off the water supply and drain all systems and appliances of water. However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply.

b. In this peril, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment.

15. Sudden And Accidental Damage From Artificially Generated Electrical Current This peril does not include loss to tubes, transistors, electronic components or circuitry that is a part of appliances, fixtures, computers, home entertainment units or other types of electronic apparatus. 16. Volcanic Eruption This peril does not include loss caused by earthquake, land shock waves or tremors.

Analysis Theft is a covered peril and provides coverage for attempted theft and loss of property from a place where it is likely the property was stolen. For example, an insured leaves his bicycle outside by the patio every night. One morning he wakes up and the bicycle is missing. It isn't likely that the insured lost or misplaced the bicycle, rather it is likely that the bicycle was stolen. Likewise, if an insured is at lunch with friends and puts her bag on the floor by her chair, and discovers the bag missing when she goes to leave, it is likely that the bag was stolen, and the insured didn't lose or misplace it.

Theft exclusions

There are five exclusions included with the theft peril. The first is for theft committed by an "insured". An insured is not going to be paid when another insured steals property. For example, a resident relative steals jewelry or electronics from the insured to support a drug habit. In order for theft to be covered, it must be perpetrated by someone not covered by the policy.

When a building is under construction building materials are often left in the open and exposed, making them easy targets. Therefore, theft of building materials and supplies when the dwelling is under construction is not covered.

As has been discussed in other sections, whenever part of the property is rented to others, theft is a possibility. Property that is in an area rented to someone who is not an "insured" is not covered. For example, a homeowner rents a storage shed for part of their property. If there is a peril that damages the property while in the rented storage, that damage is not covered.

There are three exclusions for theft of property that is off the "residence premises". The first is for trailers, semitrailers and campers; and the second is for watercraft of all types, their furnishings and equipment, and outboard engines or motors. All these items are mobile and are often at other locations, and are easier to steal when off the "residence premises". A trailer, camper or boat may be stored elsewhere in the off-season. The third exclusion is for property at an other residence owned by, rented to or occupied by an "insured" unless the "insured" is temporarily living there. Any premises where the "insured" has property but the "insured" isn't present is more susceptible to being broken into and property being stolen. However, if the "insured" is a student, the student's property is covered while the student is at school and at that residence as long as the student has been at that location any time during the 90 days immediately before the loss. For example, the student leaves his student housing for the winter break from December 15 through January 30. When he gets back to school he discovers that his premises has been broken into and his television has been stolen. Even though the student wasn't there for 45 days, he had been there within 90 days before the loss, so the loss would be covered.

The last exclusion for theft is new in the 2022 form, and that is for loss arising out of or resulting from "home-sharing host activities". As has been discussed, allowing strangers to stay on premises increases the risk of property being stolen.

Fallling objects

Falling objects are covered, but only if they first damage the roof or outside wall of the building the damaged property is in. For example, if a meteorite, tree limb or part of an airplane crashes through the roof and damages the coffee table, the damage to the coffee table would be covered since the falling object had to come through the roof or walls. But if the insured's marble statue falls off its stand and lands on the coffee table causing damage, then there is no coverage.

Weight of ice, snow, sleet

Weight of ice, snow or sleet which causes damage to property contained in a building is covered. Notice what exactly is covered – the weight of ice, snow or sleet – not the weight of water, but ice, snow or sleet and the weight of such must be what causes the damage. Snow that accumulates on the roof of the solarium to the point that the roof collapses damaging the furniture inside, then that damage is covered. Unlike falling objects, the ice, snow or sleet doesn't have to make a hole in the roof or walls for there to be coverage. So if the weight of ice damages the statue in the garden, that damage is covered.

Accidental discharge

Coverage is provided for accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic sprinkler system, or from within a household appliance. Household appliances would be the dishwasher or clothes washer; a heating system would be the hot water heater or furnace, and the plumbing system will be the pipes bringing drinkable water into the dwelling and to the sinks, tubs and showers. The form specifies that a plumbing system does not include a sump, sump pump or related equipment, or a roof drain, gutters, downspouts, or similar equipment.

There are four exclusions to this peril; the first is to the system or appliance from which the water escaped. The clothes washer malfunctions and leaks water all over the basement, damaging a nearby bookcase. The damage to the bookcase is covered, but the damage to the washing machine is not. Freezing is excluded except for what is provided under the freezing peril, which is discussed later. Damage on the "residence premises" that is caused by accidental discharge or overflow that occurs off the "residence premises" is not covered. If the next-door neighbor's swimming pool collapses and that water runs into the insured's dwelling, that is an accidental discharge from off the premises, and as such is not covered. The last exclusion is for mold, fungus or wet rot unless it is hidden within the walls or ceilings or beneath the floors of the structure. If mold is in an area generally unavailable for view, an insured can't be held responsible for not being aware of any damage that exists.

An exception exists for surface water and water below the surface of the ground as listed in the water exclusion; those water exclusions under a. and c. do not apply to water in this section. Those exclusions are listed below for reference:

a. Flood, surface water, waves, including tidal wave and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind, including storm surge; c. Water below the surface of the ground, including water which exerts pressure on, or seeps, leaks or flows through a building, sidewalk, driveway, patio, foundation, swimming pool or other structure;

This exception makes it clear that overflow or discharge from appliances, plumbing, heating and other systems would be covered, even though overflow or water below ground is listed under the water exclusion. The nature of the cause of loss is what needs to be looked at in order to determine whether the coverage or the exclusion applies. Surface water is water that meanders along the surface of the ground, such as snowmelt or water from heavy rains.

Sudden and accidental tearing

The sudden and accidental tearing apart, cracking, burning or bulging peril applies to steam or hot water heating systems, air conditioning or automatic fire sprinkler systems, or hot water heaters. The only exception to this coverage is for freezing which is not covered. Any other thing that causes the hot water heater or other mentioned system to crack, burn, bulge or tear apart is covered.

Freezing

Freezing is listed as not covered under coverages A and B unless the insured maintained heat in the dwelling or drained the lines. This applies to freezing of a plumbing, heating, air conditioning or fire sprinkler system or household appliance. Under coverage C, freezing is listed as a named peril and again applies to plumbing, heating, air conditioning or fire sprinkler systems or household appliances. As under coverages A and B, coverage applies only if the insured maintained heat in the dwelling or shut off and drained the lines. In both sections of the policy, if a sprinkler system is present the insured must keep the heat and water on so that in event of a fire the sprinkler system will do its job and protect the property. As we've seen in other sections, the policy states that a plumbing system does not include a sump, sump pump or related equipment, or a roof drain, gutter, downspout or similar fixtures or equipment.

Artificial electric current

The next peril is sudden and accidental damage from artificially generated electrical current or "arcing". Artificially generated current is the electricity from the power company since it is generated by humans; lightning is naturally generated current. While damage from artificial current is a covered peril, not everything is covered. Damage to tubes, transistors, electronic components or circuitry that is part of electronic apparatus such as appliances, fixtures, computers, home entertainment units or other electronics are not covered. So what exactly is covered, if the electronic components are not? What is covered is the rest of the unit— the housing, knobs, panels, screens and everything that is not part of the electronic circuits.

Volcano

The final peril is volcanic eruption, and it does not cover loss caused by earthquake, land shock waves or tremors. What is covered is damage from lava flows, ash deposits, and air shock waves.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.