Please help me establish the amount of coverage for rather unusual claim.
Recent tornado knocked down the tree growing within the neighbors' property. Tree knocked down the power line, cutting the power supply to my client's house. Tornado was followed by a heavy rain which caused flash flood. Within the few hours, the entire area was under the 1 ft of water. Power from my client's house was cut. Firefighter crew came, but due to the risk of electrocution, entire family was evacuated. Because of standing water, and extreme risk of electrocution, local electric company could not access the property and fix the power lines for 3 days. Water collected in basement, no working sump pump, not working AC, no ventilation or air circulation, with high temperatures outside. By the time the power line was repaired, and power turned back on, there was extensive water damage and mold already developing.
Would damage be covered by my client's policy and then subject to subrogation or should the client file a claim with his neighbor's company?
Illinois Subscriber
You have multiple things going on here. First, you have the water exclusion, which is preceded by the standard anticoncurrent causation language. This precludes the water damage even if another covered loss contributes concurrently or in any sequence to the loss. Flood, surface water, is all excluded. Likewise, power interruption is excluded if the failure of power takes place off the residence premises. The loss of power is due to the downed line from the tree next door, making it off the residence premises.
There is also the exclusion for acts or decisions of any group, organization or governmental body, which would be the power company deciding not to reconnect power for a few days. All these exclusions are preceded by the anticoncurrent causation language.
Under Additional Coverages, there is $5,000 for coverage from Fungi, wet or dry rot, or bacteria. There must be direct physical loss to covered property by fungi, wet or dry rot, or bacteria. However, the coverage only applies when such loss or costs:
are a result of a loss we cover that occurs during the policy period;
Are not excluded under Building Property Losses We Do Not Cover; and
Only if all reasonable means are used to save and preserve the property from further damage.
Sections (1) and (2) exclude this additional coverage since water, power interruption, and acts or decisions are all excluded causes of loss. We see no coverage for this loss under the insured's policy.