EQUIPMENT BREAKDOWN COVERAGE - Exclusions (Excerpted)

3. Water

Coverage does not apply to any of the following:

a. Any damage from flood, surface water, waves, tides, tidal water, or overflow of a body of water. Waves include tidal waves and tsunamis. A body of water is any natural or manufactured river, creek, ocean, or lake. Spray from any of the above, wind-driven water, and storm surge are also excluded.

b. Damage from or related to mudslide or mudflow.

c. Damage from water that discharges, overflows, or backs up in any way from sewers, drains, sumps, sump pumps, or other similar equipment.

d. Damage caused when water leaks or discharges from either domestic water pipes or sprinkler systems.

e. Water damage from underground water that seeps into doors, windows, floors, surfaces, foundations, and basements. There is also no coverage if water that presses against any of these items or that flows into them causes the damage.

f. Damage caused by material that waters described in a., c., and e. above carry, or by any material that mudslide or mudflow described in b. above moves or carries.

There is no coverage if the water damage is due to an act of nature or in any other way.

8. Fungus, Wet Rot, and Dry Rot

Coverage does not apply to loss or damage caused by the presence or any activity of fungus, wet rot, or dry rot. However, if such activity or presence causes a covered breakdown, that covered breakdown loss or damage is covered.

Note: C. Limits of Insurance 6. Limited Coverage for Fungus, Wet Rot, and Dry Rot provides some coverage, and this exclusion does not preclude such coverage. However, that coverage applies only to the portion of loss or damage caused by the presence or activity of fungus, wet rot, or dry rot that result from a covered breakdown.

9. Virus, Bacterium, or Other Microorganism

There is no coverage for any loss because of any virus, bacterium, or other microorganism that causes or could cause physical distress, illness, or disease. However, if these items cause a breakdown, that loss or damage is covered. In addition, if a loss event could be considered excluded in this exclusion or in exclusion 8. above, the terms of exclusion 8. apply.

A final paragraph states that this exclusion cannot be used to try to create coverage elsewhere in the policy.

Note: This statement is unusual because it presupposes that a claimant may try to use this exclusion wording as a way to create coverage elsewhere in the policy.