Course Description

Water Damage Exclusions

The course, "Water Damage Exclusions," is designed to enhance the knowledge, understanding, and/or professional competence of the student regarding insurance principles and coverages, relevant case law, and recent modifications in property insurance policies.

"Water Damage Exclusions" explores the fundamentals of coverage analysis for water damage losses sustained by first party property insurance policyholders. Specifically the exclusions addressed include, flood, surface water, waves, and water below the surface of the ground. The course begins with a discussion of the policy provisions and gives definitions of a variety of the policy terms. Examples of court decisions relevant to the terms used in the exclusion are discussed. This course illustrates and highlights the differences in the water damage exclusion in various editions of the Homeowners policy.

Common coverage scenarios are used throughout the course to illustrate under what circumstances the water damage exclusion might apply. Where relevant, court cases have been utilized to help clarify these issues. In addition to judicial guidance on standard language in water damage exclusions, the course also explores the outcome of scenarios involving nonstandard policy language. This will further the student’s ability to analyze coverage for water damage losses arising under a variety of circumstances ranging from weather related losses to accidental discharge from pipes to a myriad of other sources from which water originates.

This course teaches the student not only how to analyze the water damage exclusion itself, but also focuses on the importance of reading the exclusion in the context in which it appears in the open perils policy. The student will be exposed to the majority and minority judicial interpretations of the anti-concurrent causation preface to the water damage exclusion, as well as the natural source limitation to the exclusion. In addition, the student will be introduced to the new “human or animal forces” trailing language to the exclusion which may minimize or negate the application of the natural source limitation.

After completing the course, the student will understand what facts are important to courts in determining coverage, will be able to distinguish between scenarios that are typically covered and typically excluded, and will understand the analysis necessary to determine whether the water damage exclusion is applicable to a water loss.