In this section we will continue our review coverage provisions for the MRPIUA policy, including the Perils Insured Against, Exclusions and Conditions sections of the policy as well as pertinent endorsements.
Note that a complete copy of the policy form is available below under the Resources section. This lesson will address the highlights of the policy, particularly focusing on those provisions which differ from typical ISO policy forms, and those provision that set it apart from the MWUA policy form(s). In any case of a conflict between the descriptions in these lessons and the policy forms, the policy forms will prevail.
Perils Insured Against
The policy insures for property damage to covered property at the Described Location due to a named peril unless otherwise excluded.
Policy insures against 8 named perils:
1. Fire or Lightning
2. Windstorm or Hail
Remember that the peril of Windstorm or Hail is excluded from Perils Insured Against for property located in Hancock, Harrison or Jackson Counties. For property located in these counties, the policy does not insure against any property damage of any kind caused by, resulting from, contributed to, or aggravated by the peril of windstorm or hail.
For those counties where coverage does apply, the peril of Windstorm or Hail does not provide coverage for property damage:
- To the inside of a covered building or the covered property contained in a building caused by rain, water, snow, sleet, sand, or dust even if the rain, water, snow, sleet, sand, or dust is driven by wind unless the direct force of wind or hail first damages the building, causing an opening in the roof or wall and then the rain, water, snow, sleet, sand, or dust enters through this opening;
- Related to or in any way caused by water from sprinkler equipment or other piping unless the equipment or piping was damaged as a direct result of wind or hail;
- Related to or in any way caused by:
- Frost or cold weather or ice (other than hail), snow, or sleet, whether driven by wind or not;
- To watercraft of all types
- To gravemarkers, including mausoleums
- To the following property when it is located outside of the building unless liability is assumed in this policy by a separate and specific schedule, list, or endorsement for which a premium is paid by you for such assumed liability:
- Signs, radio or television antennas, aerials, or satellite dishes, including lead-in wiring, masts or towers;
- Greenhouses, chicken houses, hothouses, slathouses, trellises, or pergolas;
- Fences or walls, including but not limited to seawalls, property line walls, and similar walls; or
- Wharves, docks, piers, boathouses, or other structures located over water. If any part of the wharf, dock, pier, boathouse, or other structure is located over water, it is not covered property under the peril of Windstorm or Hail. (Note that if a portion of the structure is over water and a portion is on land, the portion on land will be covered while the portion over water will be excluded.)
The Peril of Explosion does not include property damage related to or in any way caused by explosion of steam boilers or steam pipes, if owned or leased by you or operated under the named insured’s control, nor does it include property damage related to or caused by:
- Discharge of firearms by the named insured or resident of Described Location
- Electric arcing;
- Broken water pipes;
- Breakage or operation of pressure relief devices.
4. Riot or Civil Commotion
The Peril of Vehicles does not include property damage related to or caused by:
- Vehicle or motorized conveyance owned or operated by the named insured or any resident of the Described Location or such vehicle that is within the care, custody or control of the named insured or resident
- Any vehicle to fences, driveways and walks.
The Peril of smoke includes the sudden and accidental damage from smoke, including emission or puffback of smoke, soot, fumes or vapors from a boiler, furnace or related equipment.
The Peril does not include property damage related to or in any way caused by smoke from illegal activities by the named insured or a resident of the Described Location nor Property Damage related to or in any way caused by smoke from fireplaces, agricultural smudging or industrial operations.
8. Volcanic Eruption
The Peril of Volcanic Eruption does not include property damage caused by earthquake, land shock waves, or tremors.
Exclusions include the following:
Intentional Property Damage
Mold, Fungi, Wet or Dry Rot, or Bacteria
- No coverage for property damage or cost directly or indirectly caused by, resulting from, contributed to, or aggravated by any type or form of mold, fungi, fungus, mycotoxin, spores, wet or dry rot, or bacteria even if due to a Peril Insured Against.
- The exclusion includes scents, byproducts produced or released, stains, health hazards and deterioration or weakening of property.
- Considering this exclusion is in effect, estimates should not include line items for antibacterial or antimicrobial cleaning.
Ordinance or Law
- Means any ordinance or law:
- Requiring or regulating the construction, demolition, remodeling, renovation, or repair of property including removal of resulting debris;
- The requirements of which result in any reduction in value to property; or
- Requiring you or others to test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess effects of pollutants.
Thus, coverage does not apply for either code upgrade or for cleanup, testing, monitoring, etc. for pollution-related losses or damage.
Policy does not cover any property damage or cost directly or indirectly caused by, resulting from, contributed to, or aggravated by the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants, or pollutants into or upon the insured property and/or land, the atmosphere, or any water course or body of water.
Exception: This exclusion does not apply if such discharge, dispersal, release or escape is sudden and accidental.
Power or Other Utility Service Failure
Power Failure means the failure of power or other utility service if the failure takes place away from the Described Location.
Exception: If the failure results in property damage caused by a Peril Insured Against on the Described Location, the policy will pay for property damage caused by that Peril Insured Against.
The policy provides no coverage for theft.
- Even if theft occurs at the same time as, after, or as a result of a Peril Insured Against, there is no coverage for the theft of covered property.
- If as a direct result of theft, property damage to covered property is caused by a Peril Insured Against, coverage for the resulting property damage is available subject to the policy terms.
Vacant or Unoccupied Structure
Unless otherwise endorsed, MS Plans does not pay for property damage occurring while the insured structure is vacant or unoccupied for 90 consecutive days.
- Exclusion does not apply to additional structures located on the insured premises that are not intended to be inhabited such as sheds, outbuildings or storage buildings, if the principal insured structure is neither vacant nor unoccupied
- Exclusion does not apply to seasonal or vacation homes that have not been rented to anyone or held out or offered as a rental property at any point in the preceding 12 month period
MRPIUA Vacancy Permit (Form V)
Note that the insured can obtain the Vacancy Permit Endorsement which replaces the language in the Vacant or Unoccupied Exclusion. The endorsement creates an additional exception to the exclusion in such cases where the insured structure is vacant or occupied due to an active construction project that lasts or is expected last longer than 90 consecutive days. To be effective, Form V must be completed and approved by MRPIUA prior to the expiration of the 90 consecutive days.
The policy does not pay for property damage to covered property that results from water damage.
This exclusion applies whether the water damage was related to or in any way caused by human or animal forces or any act of nature.
Exception: Property damage caused by fire or explosion resulting from water damage is covered subject to the policy terms.
MS Plans has no duty to provide coverage under the policy if the insured fails to comply with the listed duties.
- Prompt notice
- Protect property (reasonable & necessary repairs to protect property and keep accurate records of same)
- Cooperate with MS Plans in the investigation of the claim
- Prepare inventory of damaged personal property
- Provide as often as reasonably required: inspection of damaged property, copies of requested records and documents, examination under oath
- Sworn Proof of Loss
Covered losses are settled at actual cash value calculated as of the date of the loss. If the actual cash value exceeds the amount required to repair or replace the damaged property, we will pay the amount to repair or replace the damaged property.
If the insured and MS Plans agree on the cause of property damage but fail to agree on the amount of loss, either party may demand appraisal.
Other Insurance and/or Service Agreement
1. Where there is other property insurance providing coverage for the same or similar perils, MS Plans pays only the proportion of the loss covered under this policy that is this policy’s limit of liability applying to the loss bears to the total amount of insurance covering the property for property damage caused by the same or similar peril (see example on next slide)
2. Where there is a Service Agreement, MS Plans insurance is excess over any amounts payable under the plan.
The insured may waive a right of recovery against another person or entity
If not waived, MS Plans may require an assignment of rights of recovery to the extent of any payment made by MS Plans. In such cases, the insured must sign and deliver all related papers and cooperate with MS Plans in these efforts.
MS Plans will settle all losses with the named insured(s) and payment will be made to the named insured(s) and any other party identified as an additional insured under the policy. Loss will be payable 60 days after receipt of the signed, sworn proof of loss from the insured and:
- Agreement is reached as to the cause of loss;
- Agreement is reached as to the amount of the loss;
- There is an entry of final judgment; or
- There is a filing of an appraisal award.
Loss payable under Coverage A or B will be paid to mortgagee and the insured, as interests appear.
- Mortgagee interest is limited to whole principal plus any accrued interest as of the loss date.
- If more than one mortgagee, order of payment is the same as order of precedence of the mortgages.
If a claim is denied, a mortgagee may still have a valid claim assuming certain requirements are met.
Mortgagees are included on claim payments from first dollar.
Loss Payable Clause
If the Declarations show a loss payee for certain listed insured personal property, that person is considered an additional insured under this policy with respect to only that property.
If MS Plans cancels or nonrenews the policy, the loss payee will be notified in writing pursuant to the policy provisions.
MRPIUA Coverage Summary