When a rental property loss occurs in Cincinnati and the subsequent claim is rejected, it’s often due to an exclusion of coverage. Every policy form contains exclusions and limitations of coverage plus terms and conditions that the individual policyholder must abide by.
Additionally do not assume that each DF-3 policy is identical to other companies DF-3 policy form. (READ YOUR INDIVIDUAL POLICY for your company’s specific exclusions, and terms and conditions.)
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Let’s review typical DF-3 policy form exclusions of coverage for Cincinnati landlords.
We do not cover loss resulting directly or indirectly by any of the following under any Section I – Property Protection coverages. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss.
1. Enforcement of any ordinance or law regulating the construction, repair or demolition of a building or other structure, unless specifically provided under this policy. We do cover loss caused by actions of civil authorities to prevent the spread of a fire caused by a Peril We Insure Against.
2. Earthquake or other earth movement including loss caused by, contributed to or aggravated by landslide, mine subsidence, mudflow, earth sinking, rising or shifting.
3. Water damage, meaning:
a. flood, surface water, waves, tidal water or overflow of a body of water. We do not cover spray from any of these, whether or not driven by wind;
b. water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment; or
c. water or water-borne material below the surface of the ground. This includes water which exerts pressure on or flows, seeps or leaks through any part of a building or other structure, sidewalk, driveway, foundation or swimming pool; caused by or resulting from human or animal forces or any act of nature. We do cover direct loss that follows, caused by fire or explosion.
4. Failure or interruption of power or other utility service which occurs away from the insured premises. We will pay for loss caused solely by a Peril We Insure Against that ensues at the insured premises.
5. Neglect of an insured to use all reasonable means to protect covered property at and after the time of loss, or when property is endangered by a covered loss under Section I – Property Protection.
6. War (declared or undeclared), civil war, insurrection, rebellion, revolution, warlike act by a military force or military personnel, destruction or seizure or use for a military purpose, and including any consequence of any of these. Discharge of a nuclear weapon will be deemed a warlike act even if accidental.
7. Nuclear action, meaning nuclear reaction, radiation, radioactive contamination or discharge of a nuclear weapon even if accidental, or any consequence of any of these. Loss caused by nuclear action is not considered loss by perils of Fire, Explosion or Smoke. Direct loss by fire resulting from nuclear action is covered.
8. Intentional acts, meaning loss resulting from an action by or at the direction of any insured, committed with the intent to cause a loss, or where the results of such action are reasonably foreseeable and cause a loss. Intentional acts include criminal acts. In the event of such loss, no insured is entitled to coverage, even an insured who did not commit or conspire to commit the act causing the loss.
9. a. Any actual or alleged failure, malfunction or inadequacy of:
(1) any of the following, whether belonging to any insured or to others;
(a) computer hardware, including microprocessors;
(b) computer application software;
(c) computer operating systems and related software;
(d) computer networks;
(e) microprocessors (computer chips) not part of any computer system;
(f) any other computerized or electronic equipment or components; or
(2) any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in 9. a. (1) (a) through 9. a. (1) (f) of this exclusion:
due to the inability to correctly recognize, process, distinguish, interpret or accept one or more dates or times.
b. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described in 9. a. (1) (a) through (f), and 9. a. (2) of this exclusion.
If an excluded cause of loss as described in 9. a. (1) (a) through (f), and 9. a. (2) of this exclusion results in a Peril We Insure Against we will pay only for the loss or damage caused by the described peril.
We will not pay for repair, replacement or modification of any items, described in 9. a. (1) (a) through (f), and 9. a. (2) of this exclusion, to correct any deficiencies or change any features.
10. Fungi, wet or dry rot, or bacteria.
11. Damage to or loss of use of property resulting from the entire process of a volcanic eruption. This includes, but is not limited to, eruption of a volcano, earth movement resulting from the eruption process, or discharge, dispersal or accumulation of lava, rock, soot, ash or any other material from a volcano.
12. An intentionally set fire if the dwelling has been vacant for more than 30 consecutive days immediately preceding the loss. A building under construction is not considered vacant.
B. In addition to the Section I – Property Protection Exclusions A. 1. through A. 12. above that apply to all Section I coverages, we do not insure for loss to property described in Coverage A – Dwelling and Coverage B – Other Structures caused directly or indirectly by any of the following:
1. a. Wear and tear, marring, or scratching, deterioration;
b. Inherent vice, latent defect, mechanical breakdown;
c. Smog, rust or other corrosion;
d. Smoke from agricultural smudging or industrial operations;
e. Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by a Peril We Insure Against under Coverage C – Personal Property of this policy. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed;
f. Settling, shrinkage, bulging or expansion, including resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings;
g. Birds, vermin, rodents or insects;
h. Animals owned or kept by an insured;
i. Pressure from or presence of tree, shrub or plant roots;
j. Mismatch of color between undamaged material and new material used to replace faded, weathered or oxidized damaged material; or
k. Mismatch between undamaged material and new material used to repair or replace damaged material due to outdated, obsolete or discontinued products.
If water escapes from a plumbing, heating, air conditioning or automatic fire protection sprinkler system, water heater or household appliance because of any loss identified in exclusion B.1.a. through B.1.k., we cover loss caused by the water. We also cover the cost of tearing out and replacing any part of the covered building necessary to repair the system, water heater or household appliance. We do not cover loss to the system, water heater or household appliance from which the water escapes.
2. Theft in or from a dwelling under construction or of construction materials and supplies until completed and occupied.
3. Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a swimming pool, hot tub or spa, including their filtration and circulation systems, fence, pavement, patio, foundation, retaining wall, bulkhead, pier, wharf or dock.
4. Vandalism or malicious mischief, theft or attempted theft, or breakage of glass and safety glazing materials if the dwelling has been vacant for more than 30 consecutive days immediately preceding the loss. A building under construction is not considered vacant.
5. Freezing of a plumbing, heating, air conditioning or automatic fire protection sprinkler system, water heater, or household appliance, or by discharge, leakage or overflow from the system, water heater or household appliance caused by freezing while the dwelling is vacant, unoccupied or being constructed, unless you have used reasonable care to:
a. maintain heat in the building; or
b. shut off the water supply and drain the systems, water heater and household appliances of water.
6. Weather conditions, if they contribute to produce the loss in any way with a cause or event excluded under Section I – Property Protection Exclusions A. 1 through A. 12.
7. Acts or decisions, or the failure to act or decide, of any person, group, organization or governmental body.
8. Faulty, inadequate or defective:
a. planning, zoning, development, surveying, siting;
b. design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction;
c. materials used in repair, construction, renovation or remodeling; or
d. maintenance; of parts or all of any property whether on or off the insured premises.
9. Collapse, other than as provided in Section I – Additional Coverages item 1.
10. Continuous or repeated seepage or leakage of water, steam or moisture, which occurs over a period of weeks, months or years from within a plumbing, heating, air conditioning or automatic fire protection sprinkler system, water heater or household appliance, and results in deterioration, corrosion, rust, or fungi.
11. Theft of property which is not actually part of any covered building or structure.
12. Wind, hail, ice, snow or sleet to the following when outdoors:
a. radio, or television antennas or aerials, including their head-in wiring, masts or towers;
b. lawns, trees, shrubs or plants; or
c. awnings, canopies and signs.
13. Damage to fences, driveways and walks caused by vehicles owned or operated by you or an occupant of the insured premises.
Under Section I – Property Protection Exclusions B. 1. through B. 9, any ensuing loss to property described in Coverage A – Dwelling and Coverage B – Other Structures not excluded or excepted in this policy is covered.
The most obvious reason why insurance companies can refuse to pay claims is when you are committing insurance fraud by turning in a claim that is based on deception.