Chapter Eleven – 3.a) Property Excluded

Property Excluded

The named perils insurance policy does not insure loss or damage to the following types of property:

The broad form includes the aforementioned property exclusions and the following additional exclusions:

• Sewers, drains, and water mains located beyond the outside bearing walls or foundation of the building; outside communication towers, antennae (including satellite receivers) and at-tached equipment; street clocks; or exterior signs. Loss or damage caused directly by named perils is not excluded

• Animals, fish, or birds unless loss or damage is caused directly by a named peril or theft or attempted theft 

• Fur, fur garments, jewels, jewellery, costume jewellery, watches, pearls, or precious and semi-precious gemstones. Loss or damage caused directly by a named peril is  not  excluded, nor is the first $1,000 of any loss otherwise insured 

• Property insured under the terms of any marine insurance, and property while waterborne, except while on a regular ferry or railway car transfer in connection with land transportation 

• Property loaned, rented, or leased to others, or sold to others under a conditional sales or instalment payment plan or other deferred payment plan. It is excluded from the time it leaves the insured’s custody but does  not  apply while in the custody of a carrier for hire for delivery purposes at the risk of the insured 

• Property in the custody of a sales representative outside the premises, unless an insurance amount is shown on the declarations page providing such coverage 

• Damage to pressure vessels and boilers that exceed specified internal working pressure   and/or size—including connected piping and equipment—caused directly or indirectly by explosion, rupture, bursting, cracking, burning out, or bulging while connected and ready for use. The exclusion does  not  apply to the explosion of natural, coal, or manufactured gas, or the explosion of gas or unconsumed fuel within a furnace, the gas passage from the furnace to the atmosphere, or to manually portable gas cylinders 

• The exclusion in the named perils form for loss or damage to equipment or stock due to the application of heat is extended in the broad form to exclude loss or damage as a result of equipment or stock being worked on and directly resulting from such work or caused by any repairs, adjustments, or servicing of equipment and stock. Resultant fire or explosion damage is  not  excluded 

• Exterior glass or vitrolite and its lettering or ornamentation unless loss or damage is as a result of a named peril. The exclusion does  not  apply if the damage is as a result of theft or attempted theft, or vandalism or malicious acts, and occurs in a part of the building occupied by an insured who does not own the building but is legally liable for such damage

Perils Excluded 

The named perils policy does not insure against loss or damage caused directly or indirectly by the following perils:

The broad form includes both the excluded perils listed above and the following additional exclusions:

• Earthquake whether or not there are other events (whether covered or not) that contribute concurrently to loss or damage, except for loss or damage caused directly by resultant fire, explosion, smoke, or leakage from fire protective equipment. This exclusion does not apply to property in transit

• Flood, including surface water, waves, tides, tidal waves, tsunamis, or the breaking out or overflow of any body of water, except for loss or damage caused directly by resultant fire, explosion, smoke, or leakage from fire protective equipment. This exclusion does not apply to property in transit or loss or damage caused directly by leakage from a water main

• Seepage, leakage, or influx of water through basement walls, windows, or foundations and the backup or overflow of water from sewers and/or sumps, unless concurrently and directly caused by a peril not otherwise excluded. The entrance of rain, sleet, or snow through any openings such as windows or the entrance of water or natural precipitation diffused over the surface of the roof, unless through an aperture concurrently and directly caused by a peril not otherwise excluded

• Centrifugal force, or mechanical or electrical breakdown or derangement on the premises except loss or damage caused directly by resultant fire

• Temperature changes or extreme heating or freezing. Loss or damage due to dampness or dryness of atmosphere or due to the total or partial interruption to the supply of electricity, water, gas, or steam. This exclusion does not apply to the rupture of pipes or damage to pipes caused directly by freezing, or breakage of any apparatus connected to pressure vessels and boilers that are not excluded property under this policy. Loss or damage to the insured building or equipment caused directly by named perils, and theft or attempted theft is  not  excluded, nor is loss or damage caused directly by an accident to a transporting conveyance

• Loss or damage as a result of shrinkage, evaporation, loss of weight, leakage of contents, exposure to light, or change in colour or texture or finish, and loss or damage due to marring, scratching or crushing, or by contamination. Loss or damage caused by named perils, theft or attempted theft, or the rupture of pipes or apparatus connected to boilers or pressure vessels that are not excluded property under the policy are  exceptions  to this exclusion. An accident to a transporting conveyance is also  not  excluded  

• Loss or damage caused by smoke from agricultural smudging or industrial operations 

• Loss or damage caused by rodents, insects, bats, raccoons, skunks, or vermin 

• Loss or damage due to delay, loss of market, or loss of use or occupancy 

• The exclusion of any dishonest or criminal act is the same as the named perils form, but it also excludes loss or damage by theft or attempted theft committed by any employee of the insured, whether acting alone or in collusion with others 

• Loss or damage due to snowslide, landslide, subsidence, or other earth movement. Loss or damage caused directly by resultant fire, explosion, smoke, or leakage from fire protective equipment is  not excluded. The exclusion does not apply to property in transit 

• Loss or damage caused by explosion (except  explosion of natural, coal, or manufactured gas), collapse, rupture, bursting, cracking, burning out, or bulging of the following property owned, operated, or controlled by the insured  unless  loss or damage is caused by resultant fire:

» the portion containing steam or water under steam pressure of all boilers generating steam, and piping or other equipment connected to said boilers and containing steam or water under steam pressure 

» piping and apparatus or their parts normally containing steam or water under steam pressure from an external source and while under such pressure 

» other vessels and apparatus and their connected pipes while under pressure, or while in use or in operation, provided their maximum normal internal working pressure exceeds 103 kilopascals above atmospheric pressure. This exclusion does  not  apply to loss or damage resulting directly from the explosion of manually portable gas cylinders or of tanks having an internal diameter of 610 millimetres (24 inches) or less used for the heating or storage of hot water for domestic use 

» moving or rotating machinery or its parts 

» any vessels and apparatus and their connected pipes while undergoing pressure tests but does  not  exclude other insured property for resultant damage 

» gas turbines

• Loss or damage caused by settling, expansion, contraction, moving, shifting, or cracking. This exclusion does not apply to loss or damage caused directly and concurrently by a peril not otherwise excluded

•Loss or damage as a result of wear and tear, rust or corrosion, gradual deterioration, hidden or latent defects, or any quality in the property that causes it to damage or destroy itself

• The cost of making good faulty or improper material or workmanship or faulty or improper design

• Loss or damage caused by mysterious disappearance, or any inventory shortage

• Loss or damage caused directly or indirectly by pollution or the cost of any clean-up. Pollution is defined as an actual or alleged spill, discharge, emission, dispersal, seepage, leakage, migration, release, or escape of pollutants. 

The exclusion does not apply if the spill, discharge, emission, dispersal, seepage, leakage, migration, release, or escape of pollutants is directly caused by a peril or resultant peril not otherwise excluded. 

The cost or expense for any testing, monitoring, evaluating, or assessing of an actual, alleged, potential, or threatened spill, discharge, emission, dispersal, seepage, leakage, migration, release, or escape of pollutants is also excluded.

Extensions of Coverage

Both the named perils form and the broad form include extensions of coverage as summarized in the following chart:

The broad form includes one extension not found in the named perils form as follows: