Insurance topics can be confusing. This is where we hope to fill in those blanks by answering common questions about our coverages and programs.
What kinds of things are excluded from our Property coverage?
Most people are familiar with some of the basic property exclusions on our coverage form because they mirror those in traditional insurance. For example, automobiles are excluded from our Property coverage because they have their own coverage form. Foundations of buildings are not covered due to the risk of settling and decay.
Even though many members have underground sewer and water pipes, these are excluded under certain circumstances, and included in others. They are excluded if they are beyond 1,000 ft of the scheduled premises. They are, however, covered if the loss is due to explosion or fire, subject to a given sublimit. Fortunately, you can cover pipes beyond the 1,000 ft guideline by scheduling them. Most other insurers will not even consider doing this.
One misunderstood type of excluded property is land and land improvements. Land cannot be included on the Property schedule because there are no tangible structures to be covered. Land Improvements are defined as any alteration to the natural condition of the land. This includes roadways, landscaping, driveways, walkways, lighting, parking lots and spaces, fencing, pavement, walls, ditches, earthen dikes and dams, reservoirs, and ponds.
Ponds are excluded, for example, since there is no coverage for water itself. However, plastic linings, piping, valves, diversions, or structural spillways are eligible for coverage if they are scheduled. Remember, “Excluded Property” including “Land Improvements” have no status under our Property coverage unless they are scheduled.
Landscaping, lighting, fencing and walls are some of the land improvements that can and should be scheduled under your Property coverage. These items can be frequent victims of automobile accidents and vandalism. It is important that they be covered for their full replacement value.
