The declarations must list a causes of loss form for each item of covered property. If it is CP 10 30–Causes of Loss–Special Form, coverage applies based on risks of direct physical loss or damage. The coverage this form provides is extremely broad because any physical event that causes loss or damage to covered property is covered unless it is modified elsewhere in this causes of loss form.

CP 10 30 has three categories of exclusions. Each has multiple subparts.

Editorial note: ISO does not give titles to the major categories of exclusions. To assist in the analysis, we have included the title given to help identify the exclusion’s main intent.

The causes of loss in this exclusion do not apply to loss or damage caused directly, indirectly, or in any sequence in a chain of events that contribute to the loss. Exceptions to the chain of events condition are stated in the specific exclusion subpart. The lead wording emphasizes that coverage for any event analyzed in these exclusions does not apply even if the event is widespread.

There is no coverage for loss or damage caused by the following exclusions. Note that the lead-in language is not as strong or inclusive for these exclusions as the language in 1. Broad Exclusions.

Editorial note: ISO does not give titles to these exclusions. To assist in the analysis, we have included a title to help identify the main intent of the exclusion.

a. Artificially Generated Energy

Coverage does not apply if electrical, magnetic, or electromagnetic energy generated artificially causes damage, interferes with, disturbs, or disrupts any of the following:

• Networks, devices, systems, wires, or appliances of an electrical or electronic nature
• Cellular or satellite devices, appliances, systems, or networks

Examples of artificially generated energy include electrical current, charges a magnetic field produces, electromagnetic, and microwaves, among others, but this listing is not inclusive. However, coverage applies to loss or damage caused by a fire that results from them.

Note: Open-ended exclusions like this have been largely ineffective when courts interpret them. The courts maintain that it is the insurance company's responsibility to be precise in its language since it authors the form.

b. Delay, Loss of Use, or Loss of Market

Delay, loss of use, and loss of market are all consequential losses that may occur following a direct damage loss. All are excluded.

c. Agricultural Smudging and Industrial Operations

Agricultural smudging operations produce significant amounts of smoke in order to protect crops from freezing. Loss or damage it causes is excluded. Loss or damage from industrial produced smoke, vapor, or gas is also excluded.

d. Miscellaneous Losses

This exclusion has seven subparts. Most of the causes of loss listed should be viewed simply as costs associated with doing business and not as losses.

(1) Wear and tear is simply loss caused by aging and everyday use and is excluded.

Note: Wear and tear is damage, diminishment in value, or erosion due to long or hard use or exposure. It includes breakdown over time and eventually becoming unusable because of previous use. This also includes the tendency of property to pull apart or break down into pieces because of forces applied to it.

(2) There is no coverage for rust, fungus, and other hidden or latent defects. This includes any feature of the property that causes it to destroy itself.

(3) Damage caused by smog is excluded.

Note: Smog is fog that has become mixed with and polluted with smoke.

(4) All buildings (and some personal property) may shrink, expand, crack, or settle. This is normal and should be expected. Accommodations for them should be made in building construction and design and with respect to storage of personal property. Losses from these causes are excluded because these are costs of doing business.

(5) Insects, birds, rodents, and other animals may cause considerable damage to buildings and the sudden damage they cause is covered. However, their long-term presence, as evidenced by nesting, infestation, and waste products or secretions, is a building maintenance issue and is excluded.

(6) Machines regularly break down because of use. This is an anticipated cost of doing business that should be prevented with regular scheduled maintenance. As a result, mechanical breakdown is excluded. Rupture and bursting caused by centrifugal force is considered mechanical breakdown and is also excluded. The exception to this exclusion is that coverage does apply to the damage caused if the mechanical breakdown results in elevator collision. Elevator collision covers both the elevator and damage to the shaft and other property the elevator damages.

The subparts of this exclusion are sometimes referred to as the anti-concurrent causation exclusions. These exclusions are unique in that, if a loss is covered as a covered cause of loss, with the exception of these exclusions, it is still covered. On the other hand, if the loss would have been excluded anyway, it is still excluded. The three subparts of this exclusion are:

a. Weather Conditions

Loss or damage due to weather conditions is excluded but only when the loss is caused by a weather condition combined with a cause of loss excluded in exclusion 1.

b. Acts or Decisions

Governmental entities and related groups make decisions and take actions that not only affect others but may also cause loss or damage. Loss or damage that results from such acts or decisions is excluded.

c. Design Flaws

Loss or damage due to faulty, inadequate, or defective planning, design, materials, and maintenance is excluded. An important provision is that it applies both on and away from the designated premises.

These three exclusions apply only to Business Income, Leasehold Interest, and Legal Liability.

a. The following additional exclusions apply to the Business Income (And Extra Expense) Coverage Form, Business Income (Without Extra Expense) Coverage Form, and Extra Expense Coverage Form:

(1) Loss due to damage to finished stock, or the amount of time needed to replace finished stock, is excluded.

Note: Since this incident is time-related, it does not apply to Extra Expense.

(2) There is no coverage for any loss that results from physical loss or damage to radio or television antennas or satellite dishes.

(3) Coverage does not apply to any increase of loss due to:

·       Interference by strikers or others that delays rebuilding (but only for such actions at the actual building site)

·       Suspension, lapse, or cancellation of a license, lease, or contract. However, if the lapse or cancellation is a result of a loss, coverage applies during the period of restoration.

(4) Extra Expense coverage does not extend beyond the period of restoration when a license, lease, or contract is suspended, lapses, or is cancelled.

(5) Any consequential loss is excluded.

Note: Since Business Income and Extra Expense coverage are both consequential losses, it might be more appropriate to say that all other consequential loss is excluded.

b. Leasehold Interest Coverage Form

CP 10 30 changes in two ways when Leasehold Interest Coverage is provided.

(1) The Ordinance or Law exclusion B. 1. a. does not apply.

(2) There is no coverage for loss that results if the named insured cancels a lease, has a license suspended, lapsed, or cancelled, or any consequential loss.

c. Legal Liability Coverage Form

The Legal Liability coverage form is more of a liability coverage form than a property coverage form. As a result, there are a number of changes to CP 10 30.

(1) Five exclusions are removed and do not apply. They are exclusions 1.a. Ordinance or Law, 1.c. Governmental Action, 1.d. Nuclear Hazard, 1.e. Utility Services, and 1.f. War and Military Action.

(2) Two liability-related exclusions are added:

·       Contractual Liability

There is no coverage for liability the named insured assumes under a contract. The only exception is a lease agreement where it assumes liability for building damage due to attempted break-in. This agreement must be made prior to any accident and the coverage form must insure the building in question.

·       Nuclear Hazard

There is no coverage for suits brought due to any damages or expenses that relate to nuclear reaction, radiation, or contamination.

A new exclusion applies to only merchandise, goods, or other products. It is added to exclude loss or damage to such property because of an error or omission in production.

Loss or Damage to Products

There is no coverage for loss or damage to merchandise, goods, or other products caused by any party's error or omission. These errors or omissions are excluded beginning with planning or testing through repair and maintenance. This exclusion also applies to errors or omission made at locations where work is outsourced. It applies to any compromising of the product’s form, substance, or quality.

The one exception is if such an error or omission results in a covered cause of loss occurring. In that case, coverage applies to only the loss or damage the covered cause of loss causes.

This completes the analysis of what is covered and what is excluded. Four coverage limitations must now be reviewed. Each one has multiple subparts.

1. Broad Limitation

Loss or damage to any property described and limited in this section is excluded. Losses that are a consequence of loss to such property are also excluded.

a. Steam Boilers, Steam Pipes, Steam Engines, or Steam Turbines

There is no coverage if a loss is caused by or results from a condition or an event that occurs inside covered steam boilers, steam pipes, steam engines, or steam turbines. However, coverage applies if gases or fuel inside the furnace or within a flue or other passage explode and cause loss or damage.

b. Water Heating Devices

Loss or damage caused by water-heating devices (including hot water boilers) caused by a condition or event within them is excluded. However, coverage applies if an explosion causes the loss.

c. Interior of Any Building and Personal Property

The interior of a building and personal property inside it is not covered for damage that rain, snow, sleet, ice, sand, or dust causes. However, there are two exceptions. Coverage applies:

• If the roof or walls of the building are first damaged by a covered cause of loss that allows the rain, snow, sleet, ice, sand, or dust to enter
• If snow, sleet, or ice on the building thaws and then causes the loss

Note: Leaving doors and windows open limits a loss that may otherwise be covered.

d. Building Materials Awaiting Installation in a Building

Theft of building materials awaiting installation and not yet attached to the building is excluded. This limitation does not apply if the building materials are being held for sale, unless CP 00 20–Builders Risk Coverage Form insures the materials. This means that this limitation applies without exception under CP 00 20. This limitation does not apply to the business income coverage forms or the extra expense coverage form.

e. Inventory Shortage

Any missing property loss that can be proven only because an inventory revealed a shortage is excluded. This is because it really means there is no actual knowledge that something was taken. The loss could be due to a mathematical or computation error, employee theft, or a break-in. There is no coverage if there is nothing to physically suggest what actually happened.

f. Unauthorized Instructions

Coverage does not apply if a loss occurs because property was given to another person or sent to another place based solely on unauthorized instructions.

g. Vegetated Roofs (10 12 addition)

Lawns, trees, shrubs, and plants that are part of vegetated roofs are covered property because they are excepted from 2. Property Not Covered in the coverage form. This limitation is needed because they are alive and depend on certain conditions to thrive. They are also outdoors and are not protected from the elements. There is no coverage if these lawns, trees, shrubs, or plants are damaged due to:

• The atmosphere or the soil being too damp or too dry
• The temperature changes too often or is considered extreme
• Disease
• Hail, frost, rain, snow, ice, or sleet

2. Coverage Limited to Specified Causes of Loss

The insurance company does not pay for loss or damage to any of the following property unless a specified cause of loss or breakage of building glass causes the loss or damage:

a. Animals

This item has a limitation within a limitation. In addition to being covered only if specified perils or glass breakage causes the loss, coverage applies only if the animal dies or must be destroyed. This means that coverage does not apply to veterinarian bills or expenses incurred to save the animal.

b. This limitation applies to fragile objects only if they are broken. Statuary, marbles, chinaware, and porcelains are examples of such fragile items. Glass and items that contain property for sale are not subject to this limitation.

c. Builders’ machinery, tools, and equipment that the named insured owns or has entrusted to it that qualifies as covered property is subject to this limitation. However, the same property located on or within 100 feet of the described premises is covered without being subject to this limitation, unless CP 00 20–Builders Risk Coverage Form covers the property. This means that this limitation applies without exception under CP 00 20.

Note: This limitation does not apply to the business income or extra expense coverage forms.

3. Limited Theft Coverage for Specific Types of Property (10 12 change)

The following categories have special limitations that apply to only theft losses. These are per occurrence sub-limits that do not increase the limit of insurance available to cover a loss. These sub-limits can be increased:

• Furs, fur garments, and fur-trimmed garments are subject to a $2,500 limit.
• Jewelry, watches, watch movements, jewels, pearls, gold, and similar items are subject to a $2,500 limit. This limitation does not apply to jewelry or watches that are valued at less than $100 each.

• Patterns, dies, molds, and forms are subject to a $2,500 limit.

• Stamps, tickets, letters of credit, and lottery tickets held for sale are subject to a $250 limit.

These limitations do not apply to the business income or extra expense coverage forms.

Note: Coverage applies for all other causes of loss, subject to the standard exclusions and the limit of insurance on the declarations.

4. Defect in Systems or Appliances

This additional coverage is necessary because the coverage form specifically excludes collapse. Policies and coverage forms once provided collapse coverage. However, broad legal interpretations forced rewriting collapse coverage as a named cause of loss.

1. Collapse coverage applies to abrupt collapse. As used in this coverage, abrupt collapse means that the building or part of the building first abruptly falls down or caves in. As a result of such falling down or caving in, the building or part of the building cannot be occupied for its intended purpose.

2. Payment for such abrupt collapse as described in item 1. is for only direct physical damage to the collapsed building or business personal property inside the building. However, payment is made only if any of the following cause the collapse:

a. Hidden decay. This is as long as the insured was not aware of the hidden decay prior to the collapse.

b. Hidden insect or vermin damage. This is only if the insured was not aware of the hidden insect or vermin damage prior to the collapse.

c. Defective construction material or construction methods. This is only if the collapse occurs while a building is being built, remodeled, or renovated.

d. Defective construction material or construction methods. This is only if the collapse occurs after a building is being built, remodeled, or renovated, provided that one of the following contributed to the collapse:

·       Items a. or b. of this paragraph

·       Specified cause of loss

·       Glass breakage

·       Weight of people or personal property

·       Weight of rain that collects on a roof

3. There is no coverage for any of the following:

• A building or any part of a building in danger of falling down or caving in
• A part of a building that remains standing even if it has separated from another part of the building
• A building or part of a building that is standing but shows evidence that it may collapse due to bulging, sagging, cracking, bending, leaning, settling, shrinking, or expanding

Collapse was removed as a covered cause of loss and then added back in as an additional coverage many years ago. Similarly, and for the same reasons, fungus coverage was removed as a covered cause of loss and is added back as a specified cause of loss coverage. Although the method is similar, the coverage provided is very different.

1. Coverage applies only if the fungus, wet rot, dry rot, or bacteria result from a specified cause of loss or flood, if flood coverage is provided. Because fire and lightning losses are excepted from exclusion 1.h. Fungus, Wet Rot, Dry Rot, and Bacteria, this Additional Coverage excludes losses that result from them.

This coverage also applies only if the insured takes all reasonable steps to prevent further damage to property during or following a loss.

Lawns, trees, shrubs, or plants that are part of a vegetated roof are not eligible for this additional coverage. (10 12 addition)

2. Loss or damage includes more than the direct damage to the property by the fungus, wet rot, dry rot, or bacteria. It also includes removing them. The cost to tear out and replace walls and other parts of the building in order to get to the problem is covered. Any necessary testing to verify that the property is clean and the situation mitigated is also covered.

3. The limit of insurance for this coverage is not per occurrence. It is $15,000 per policy year. This means that the limit for the policy year is $15,000, regardless of the number of locations and occurrences. There is no additional limit available once the limit is used up. If the condition continues over multiple policy years, the limit available in the policy year when the loss occurred that caused the fungus, wet rot, dry rot, or bacteria is the only limit that applies.

Note: CP 04 31–Changes–Fungus, Wet Rot, Dry Rot, and Bacteria endorsement is available to increase the limit and also provide coverage per location.

4. The $15,000 limit is a sub-limit. It does not increase the limit of insurance.

5. This Additional Coverage does not affect the coverage available under Additional Coverage Extension–Water Damage, Other Liquids, Powder, or Molten Material Damage or under Additional Coverage–Collapse.

6. If business income and/or extra expense coverage is provided, this extension provides coverage in two different situations.

• Coverage applies for 30 days if the specified cause of loss direct damage loss does not result in a business income or extra expense loss but the fungus, wet rot, dry rot, and bacteria loss does.
• In addition, if the direct damage loss from the specified cause of loss results in a business income or extra expense loss, this extension provides 30 additional days of coverage for the delays or extension of the down time due to the fungus, wet rot, dry rot, and bacteria.

Three coverage extensions broaden the coverage CP 10 30–Causes of Loss–Special Form provides.

1. Property in Transit

This extension applies to only the named insured's covered personal property.

a. Covered personal property in transit in or on a motor vehicle the named insured owns, leases, or operates is covered. This extension applies only if the property is not in a salesperson's care, custody, or control, and is more than 100 feet away from the premises but still in the coverage territory.

b. The loss or damage must result from one of the following causes of loss:

• Fire, lightning, explosion, windstorm, hail, riot, civil commotion, or vandalism
• Upset, overturn, or collision of the transporting vehicle with an object or another vehicle. A vehicle that strikes the roadbed is not considered collision.
• Theft of an entire bale, case, or product. However, visible signs or evidence of forced entry must be present and the vehicle's body or compartment where the property was kept must have been securely locked.

c. The additional limit of insurance under this Additional Coverage Extension is $5,000. It is not subject to coinsurance.

Note: The causes of loss an inland marine transportation coverage form provides are much broader. For example, flood and earthquake are covered.

Related Articles:

1. Fungus

This is any form or type of fungus. It includes mold, mildew, mycotoxins, spores, scents, and by-products that fungus produces.

2. Specified Causes of Loss (10 12 changes)

This means only the following causes of loss: Fire, lightning, explosion, windstorm, hail, smoke, aircraft, vehicles, riot, civil commotion, vandalism, leakage from fire extinguishing equipment, volcanic action, and weight of snow, ice, or sleet. The following are also considered specified causes of loss:

a. Sinkhole collapse is the sudden sinking or collapse of land into spaces created by water acting on dolomite or limestone. The coverage provided does not include the cost to fill sinkholes or any sinking or collapse into man-made underground spaces.

b. Damage caused by falling objects is covered. However, coverage does not apply to loss or damage to personal property left in the open. It also does not apply to loss or damage to the interior of a building or to personal property inside the building unless the falling object first damages the roof or an outer wall.

c. Water damage is accidental discharge or leakage of either of the following:

Note: The prior definition was only the first bullet in this definition. The second bullet and the examples are added with the 10 12 definition.

• Water or steam but only when caused by the cracking or breaking apart of the plumbing or HVAC system or appliance on the described premises. The system must contain water or steam. However, this coverage does not apply to sump systems.
• Water or waterborne material but only when caused by cracking or breaking apart a water or sewer pipe located off premises. The water or sewer pipe must be part of a municipal water supply system or municipal sanitary sewer system. Wear and tear must cause the pipe to crack or break.

This definition is limited by conditions in the Water Exclusion. Any situation the Water Exclusion excludes is not considered water damage. CP 10 30 then provides two examples of when situations that may appear to be water damage are not water damage because they are not covered under the Water Exclusion.

ISO Example 1: Weather induced flooding causes a pipe to break apart, causing water damage. There is no coverage even if wear and tear contributed to the pipe breaking because flooding caused the pipe to break.

ISO Example 2: A pipe breaks because of wear and tear. Damage that occurs following that break because of weather-induced flooding or that becomes worse because of it is excluded.

The main difference between these forms is that CP 10 10–Causes of Loss–Basic Form covers losses based on designated or named causes of loss instead of risks of direct physical damage causes of loss that CP 10 30–Causes of Loss–Special Form provides. With
CP 10 10, the insured must find coverage in one of the listed causes of loss. With CP 10 30, the insurance company must review the exclusions to determine that a specific loss is excluded. While CP 10 30 has more exclusions in order to explain what is excluded, the covered causes of loss sections of CP 10 10 is longer.

CP 10 10–CAUSES OF LOSS–BASIC FORM

CP 10 10–Causes of Loss–Basic Form covers 11 causes of loss. CP 10 30 also covers these causes of loss but does not list them specifically.

A. COVERED CAUSES OF LOSS

1. Fire

2. Lightning

3. Explosion. Explosion does not include operation of a pressure device or it rupturing or bursting. It also does not include a building or structure rupturing or bursting because water caused contents inside it to expand.

4. Windstorm or hail. There following are not considered windstorm or hail:

• Frost or cold weather
• Ice that is not hail, snow, or sleet. These are not wind even when wind accompanies them.
• Damage to the interior of a building (or to personal property inside the building) caused by snow, rain, sand, or dust (unless the roof or walls are first damaged by wind or hail that then allows the snow, rain, sand, or dust to enter).
• Hail damage to lawns, trees, shrubs, or plants that are part of a vegetated roof (10 12 addition)

5. Smoke damage that is both sudden and accidental is covered. Smoke damage from agricultural smudging or industrial operations is specifically excluded.

6. Damage by vehicles or aircraft is covered only if the vehicle or aircraft actually physically contacts the damaged property. There is also coverage for property damaged that is inside a building when a vehicle or aircraft physically contacts the building. This means that the aircraft or vehicle (or their parts) must actually touch the property or the building where the property is located. As a result, sonic boom damage (also known as shock wave) is excluded because there is no physical damage.

There is no coverage for vehicle damage that the named insured’s owned vehicle (or any vehicle it uses in its operations) causes.

7. Riot or civil commotion. This cause of loss also includes acts of striking employees when they occupy a premises and looting by rioters that occurs at the same time as a civil commotion event.

8. Vandalism. Such damage must be willful and malicious. Loss that results from theft is not considered vandalism. However, damage that burglars cause while breaking into and exiting from a building is covered.

9. Sprinkler leakage damage. Sprinkler leakage occurs when any substance leaks or discharges from an automatic sprinkler system. This includes complete collapse of the system's tank. There is no requirement that the event be accidental. If the covered property is building, repairing or replacing damaged parts of the systems is covered when the damage causes leakage or is caused by freezing. The cost to tear out and repair parts of the building in order to access and repair a leaking sprinkler system is also covered.

Note: CP 10 10 defines what is considered an automatic sprinkler system. CP 10 30 does not define it.

10. Sinkhole collapse. This coverage does not apply to or include the costs to fill sinkholes. Coverage also does not apply to land that sinks or collapses into man-made mines and underground spaces.

11. Volcanic Action is covered similarly and as CP 10 30 defines it under the Earth Movement Exclusion.

B. EXCLUSIONS

This section in CP 10 10 is considerably shorter than in CP 10 30 because the causes of loss are defined. It has two exclusions compared to three exclusions in CP 10 30. CP 10 10 does not have the anti-concurrent causation exclusions that is in CP 10 30 because it specifically states the types of losses covered.

1. Broad Exclusions

These exclusions are identical to those in CP 10 30. Both forms exclude Ordinance or Law, Earth Movement, Governmental Action, Nuclear Hazard, Utility Services, War and Military Action, Water, and Fungus, Wet Rot, Dry Rot, and Bacteria.

2. Limited Exclusions

This exclusions section has only six subparts compared to 13 in CP 10 30. However, this does not mean that CP 10 10 provides broader coverage. It simply means that fewer exclusions are needed because the coverage is much narrower to begin with. The CP 10 10 exclusions are:

a. Artificially Generated Energy

This exclusion is identical to exclusion 2. a. in CP 10 30.

b. Rupture or bursting of water pipes

This does not apply to sprinkler systems unless caused by a covered cause of loss

Note: It is always to the insurance company’s advantage to have the sprinkler system operate properly.

c. Water or Steam Leakage or Discharge

There is no coverage unless a covered cause of loss damages the system or appliance. There is no coverage if such seepage or leakage continues for more than 14 days. The first part of this exclusion does not apply to automatic sprinkler systems. The second part of this exclusion is identical to exclusion 2. f. in CP 10 30.

d. Explosion of Owned or Operated Steam Boilers

This exclusion is identical to exclusion 2. e. in CP 10 30. However, the exclusion in CP 10 10 does not have the coverage exception for explosion of gases within the furnace.

e. Mechanical Breakdown

This exclusion is identical to the exclusion 2. d. (6) in CP 10 30. However the exceptions are different. The exceptions in CP 10 30 are for elevator collision, glass breakage, and specified causes of loss. The exception in CP 10 10 is for mechanical breakdown that results in a covered cause of loss.

f. Neglect

This exclusion is identical to exclusion 2. m. in CP 10 30.

3. Special Exclusions

These exclusions are identical in both forms.

C. ADDITIONAL COVERAGE

CP 10 10 has only one Additional Coverage. Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria is identical to CP 10 30.

Note: CP 10 10 does not cover collapse.

D. LIMITATION

CP 10 30 has a number of limitations but CP 10 10 has only one. It states that the insurance company pays for only loss of animals that are killed or must be destroyed. It does not pay veterinarian bills.

Note: This limitation is identical to the second part of limitation 2. a. in CP 10 30. The first part in CP 10 30 limits coverage to only specified cause of loss. This is not necessary in CP 10 10 because it covers only the basic causes of loss.

E. DEFINITIONS

Fungus is the only term defined and it is identical to the definition in CP 10 30.

The main difference between these forms is that CP 10 20–Causes of Loss–Broad Form covers losses based on a designated or named causes of loss instead of risks of direct physical damage causes of loss that CP 10 30–Causes of Loss–Special Form provides. With CP 10 20, the insured must find coverage in one of the listed causes of loss. With CP 10 30, the insurance company must review the exclusions to determine that a specific loss is excluded. While CP 10 30 has more exclusions in order to explain what is not covered, the covered causes of loss sections of CP 10 20 is longer.

CP 10 20–CAUSES OF LOSS–BROAD FORM

CP 10 20–Causes of Loss–Broad Form covers 14 causes of loss. CP 10 30 also covers these causes of loss but does not list them specifically.

A. COVERED CAUSES OF LOSS

CP 10 20 provides broader coverage than CP 10 10 but not as broad as CP 10 30 because it also lists only the covered causes of loss. It includes 14 covered causes of loss compared to 11 in CP 10 10. The first 11 in CP 10 20 are identical to the first 11 in CP 10 10. The three additional covered causes of loss are:

12. Falling Objects

Coverage on personal property applies only to property in the building. It does not apply to property in the open. However, coverage does not apply until and unless the falling object first damages an outside wall of the building or its roof. This is identical to falling objects as described in the definition of specified causes of loss in CP 10 30.

13. Weight of Snow, Ice, or Sleet

Any of these that causes damage is covered unless the personal property damaged is outside a covered building. There is also no coverage for such damage to lawns, trees, shrubs, or plants that are part of a vegetative roof. (10 12 change)

Note: Previous editions also excluded damage to gutters or downspouts.

14. Water Damage

This is accidental discharge of water or steam due to a plumbing, air conditioning, heating, or other systems or appliances cracking or breaking apart. The limitations on coverage are similar to those in CP 10 30 but all are brought together in CP 10 20.

B. EXCLUSIONS

This section in CP 10 20 is considerably shorter than in CP 10 30 because the causes of loss are defined. It has two exclusions compared to three exclusions in CP 10 30. CP 10 20 does not have the anti-concurrent causation exclusions that are in CP 10 30 because these causes of action could not be advanced due to only the named causes of loss that are covered.

1. Broad Exclusions

These exclusions are identical to those in CP 10 30. Both forms exclude Ordinance or Law, Earth Movement, Governmental Action, Nuclear Hazard, Utility Services, War and Military Action, Water, and Fungus, Wet Rot, Dry Rot, and Bacteria.

2. Limited Exclusions

This exclusions section has only four subparts compared to 13 in CP 10 30 but this does not mean that CP 10 20 provides broader coverage. It simply means that fewer exclusions are needed because the coverage is much narrower to begin with. The CP 10 20 exclusions are:

a. Artificially Generated Energy (06 07 change)

This exclusion is identical to exclusion 2. a. in CP 10 30.

b. Explosion of Owned or Operated Steam Boilers

This exclusion is identical to exclusion 2. e. in CP 10 30. However, the exclusion in CP 10 20 does not have the coverage exception for explosion of gases inside furnaces.

c. Mechanical Breakdown

This exclusion is identical to exclusion 2. d. (6) in CP 10 30. However the exceptions are different. The exceptions in CP 10 30 are for elevator collision, glass breakage, and specified causes of loss. The exception in CP 10 20 is for mechanical breakdown that results in a covered cause of loss.

d. Neglect

This exclusion is identical to exclusion 2. m. in CP 10 30.

C. ADDITIONAL COVERAGE–COLLAPSE

This coverage is similar to the coverage CP 10 30 provides. The only difference is that CP 10 30 states that specified causes of loss apply while CP 10 20 lists the covered causes of loss that apply.

D. ADDITIONAL COVERAGE–LIMITED COVERAGE FOR FUNGUS, WET ROT, DRY ROT, AND BACTERIA

This coverage is similar to the coverage CP 10 30 provides. The only difference is that CP 10 20 lists the causes of loss instead of referring to the specified causes of loss in CP 10 30.

E. LIMITATION

This section of CP 10 20 is identical to the same section in CP 10 10.

F. DEFINITIONS

Fungus is the only term defined and it is identical to the definition in both CP 10 10 and CP 10 30.

CONCLUSION

CP 10 30 is the broadest of the three causes of loss forms and should be viewed as the first choice for most insureds. However, an alternative must be used from time to time. A good understanding of each form allows the agent to provide sound advice to the insured to enable it to make an informed selection.