Table of Contents – Settling, Wear and Tear
| 2. We do not insure, however, for loss:
. . . . c. Caused by: . . . . (6) Any of the following: . . . . (f) Settling |
Introduction
Two main issues have arisen with respect to the Settling Exclusion. One, does the exclusion apply to all events in the listed categories, or does it apply only to nonfortuitous losses — normal, expectable instances of these events? A variation on this inquiry questions whether it should be limited to highly expectable losses. Or, taking the opposite viewpoint, should it be applied to all phenomena that by definition fall within the listed terms?
Second, even assuming a loss does fall within the ambit of the exclusion, will the exclusion apply if an insured can trace the loss back to a covered proximate cause? Our summaries of the cases track these issues and are grouped according to state. Watch for non-standard language that may alter the result in some cases.
Note, in considering the approach a court would take to any one of the exclusions in this “wear and tear” group of exclusions or the approach an individual company wishes to adopt in the absence of controlling law, one might do well to consider this group of exclusions as a whole. For example, where there are no settling cases for a given state, an insurer might look to cases on selected other exclusions in the “wear and tear” group. Exclusions for wear and tear, deterioration, corrosion and so forth involve the same basic two issues as does the settling exclusion. A court would be likely to take the same approach to these issues when considering any of these exclusions.
ADDITIONAL REFERENCE SOURCES
PLRB, Commercial Property Annot. Key CP917 – Discussion of Similar language in the Commercial Property forms.
PLRB, Businessowners Annot. Key BP52 – Discussion of similar language in the Businessowners form.
PLRB, Homeowners Annot. Key HO132 – Discussion of similar language in the Homeowners Property forms
STATE-BY-STATE
The following chart, organized by state, provides links to cases that have dealt with the proximate cause directly, or at least have rendered decisions pertinent to the issue.
POLICY LANGUAGE
ISO HO 00 03 10 00
| SECTION I – PERILS INSURED AGAINST
A. Coverage A – Dwelling And Coverage B – Other Structures 1. We insure against risk of direct physical loss to property described in Coverages A and B. 2. We do not insure, however, for loss: . . . . c. Caused by: . . . . (6) Any of the following: . . . . (f) Settling, shrinking, bulging or expansion, including resultant cracking, of bulkheads, pavements, patios, footings, foundations, walls, floors, roofs or ceilings; . . . . Under 2.b. and c. above, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered. Copyright, Insurance Services Office, Inc., 2000 |
ISO BP 00 02 12 99
| B. Exclusions
. . . . 2. We will not pay for loss or damage caused by or resulting from any of the following: . . . . k. Other Types Of Loss . . . . (4) Settling, cracking, shrinking or expansion; . . . . But if an excluded cause of loss that is listed in B.2.k.(1) through B.2.k.(7) results in a “specified cause of loss” or building glass breakage, we will pay for the loss or damage caused by that “specified cause of loss” or building glass breakage. Copyright, Insurance Services Office, Inc., 1999 |
ISO CP 00 10/CP 10 30 04 02
| B. Exclusions
. . . . 2. We will not pay for loss or damage caused by or resulting from any of the following: . . . . d. . . . . (4) Settling, cracking, shrinking or expansion; . . . . But if an excluded cause of loss that is listed in 2.d.(1) through (7) results in a “specified cause of loss” or building glass breakage, we will pay for the loss or damage caused by that “specified cause of loss” or building glass breakage. Copyright, Insurance Services Office, Inc., 2002 |
Includes copyrighted material of ISO Properties, Inc. with its permission.
