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Holding Water: Water Terms Used Within the Commercial Property Policy
[Editor's Note: Based on reader feedback, we've wanted to cover more issues regarding insurance as contained and referred to in commercial leases. Our colleagues at FC&S (www.nuco.com/fcs) recently ran a deep-dive series on water issues and given how important the issues are for commercial real estate owners, we thought it was a good place to start.]
Water issues are often confusing and involve multiple undefined terms such as plumbing, sewer, drain, overflow, or discharge. This article reviews how the terms are applied in the commercial property policy. A previous article in this series — "Holding Water – Definitions Needed to Understand Water Losses" — defined terms commonly used in both the commercial property policy and the homeowners policy. However, just defining the terms isn't enough to fully understand the coverage. How the terms are used within the policy, and the surrounding language including exclusions and exceptions, is critical to determining whether a given loss will be covered. This article reviews the terms as found within the ISO CP 10 30 Causes of Loss Special Form, and explains what that means for coverage.
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