Unit 6 - Section I Perils and Exclusions

6.00 SUMMARY OF FORMS DIFFERENCES.

It is in Section I, Perils Insured Against, that nearly all differences among the various Homeowners forms are found. Broadly summarizing the differences:

HO 00 02 - ("HO-2") - Broad Form - named perils.

HO 00 03- ("HO-3") - Special Form - "open-peril" for Coverages A and B; same named perils as HO-2 for Coverage C.

HO 00 04 - ("HO-4") - Contents Broad Form - same named HO-2 perils for Coverage C (no Coverages A or B).

HO 00 05 - ("HO-5") - Comprehensive Form - the broadest of all forms. Covers dwelling and contents on an open peril basis.

HO 00 06 - ("HO-6") - Unit-Owners Form - same named perils as HO-2 for Coverages A and C; no Coverage B. Coverage analysis is deferred until Unit Ten.

HO 00 08 - ("HO-8") - Modified Coverage Form - more limited named perils than HO-2.

Editor's Note: For simplicity, the 4-digit form number is modified to the more familiar 1-digit style.

6.01 NAMED PERILS VS. "ALL-RISKS."

In coverage analysis, the cause of loss under a named peril coverage must be by a specifically described peril in the form. An "all-risks" policy, as described by a Florida court, "ordinarily covers every loss that may happen except by fraudulent acts of the insured, excepting losses within a specific exclusion; insured has the burden of proving the property was lost or damaged and fortuity of loss, insurer has burden to prove loss was from an excluded clause."¹

Although "all-risks" may increasingly be viewed as a misnomer, the term will probably continue in general use, to differentiate from named peril forms; hence, its continued use throughout this book.

6.02 PROXIMATE CAUSE OF LOSS.

Losses which are proximately caused by an insured peril under a named perils form or by an unexcluded cause under an "all-risks" form are covered from a "cause of loss" viewpoint. The proximate cause is the originating cause and if there is no intervening cause between the occurrence and the damage, then all damage is viewed as having resulted from the originating cause. Examples:

1. When a fire occurs and little damage results from the actual fire, but there is extensive damage from smoke, water to extinguish, and damage intentionally or accidentally caused by firemen, all of the damage is covered by the peril of fire.
   
   
2. An insured's roof is damaged by a windstorm, covered and paid for by the insurer. The insured has the roof repaired, but with the next rain, water causes interior damage because of negligent repair of flashing by the roofer. The cause of damage can be traced back to the windstorm but the roofer's negligence was an intervening cause and the loss is not properly treated as "windstorm".

If the originating cause is excluded, but the damage results from a subsequent covered peril, the loss may still be covered. Example: Termites in a tree trunk cause the tree to fall on the house, of its own weight. The policy excludes losses from termites but covers loss from falling objects. Although the loss was proximately caused by an excluded peril, the resultant damage is covered.

The insurer may specifically exclude some results arising from a covered originating cause. For example, coverage may be included for windstorm damage but the insurer may exclude loss from associated rising waters and wave wash, proximately caused by the storm.

6.03 GENERAL HOMEOWNERS EXCLUSIONS.

Section I coverage in all Homeowners forms is subject to certain general exclusions:

6.031 ENFORCEMENT OF BUILDING LAW.

See 5.09 for discussion of this exclusion.

6.032 EARTH MOVEMENT.

All forms exclude:

2. Earth Movement means

a. Earthquake including land shock waves or tremors before, during or after a volcanic eruption;

b. Landslide, mudslide or mudflow;

c. Subsidence or sinkhole; or

d. Any other earth movement including earth sinking, rising or shifting;

caused by or resulting from human or animal forces or any act of nature unless direct loss by fire
or explosion ensues and then we will pay only for the ensuing loss.

This Exclusion (2.) does not apply to loss by:
(i) Theft; or
(ii) "Catastrophic ground cover collapse".

Mandatory endorsement HO 01 09 states this exclusion does not apply to Sinkhole Collapse. (See 6.051.)

Earthquake protection may be added as an optional coverage by attachment of endorsement HO 04 54.

6.033 WATER DAMAGE.

All forms exclude:

Water Damage means:

a. Flood, surface water, waves, tidal water, overflow of a body of water, or 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, including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structure.

caused by or resulting from human or animal forces or any act of nature.

Direct loss by fire, explosion or theft resulting from water damage is covered.

The wording in above effectively excludes all damage caused by waters rising above their normal levels. While NFIP Flood Insurance does not use exactly the same terminology in covering, for practical purposes it does protect against that which is excluded here.

In Florida, surface water does not include that which collects on a building roof. Following a hurricane, a Homeowners insured had a build-up of water on the dwelling roof, caused by clogged downspouts. The roof collapsed and the insurer relied on the surface water exclusion. The court held that surface water means only that which is on the surface of the ground.²

The principal problem, this exclusion, is differentiating between damage caused by the wind and the rising waters, when both have occurred in a hurricane. The difficulty is minimized when the insured has both Homeowners and Flood coverage, and a single adjuster handles the loss.

As to backing up of sewers or drains, that which results from a flood is covered by NFIP Flood Insurance. In other backing up losses, there appears to be disagreement over the exclusion's intent based on whether there is an "exterior" or "interior" cause of loss. An exterior cause would be, as recently occurred in a Florida city, a ruptured pipe leading to the waste water plant prohibiting pumping of waste into the plant and causing raw sewage to back up in residential toilets. This is clearly excluded. But if there is a blockage within the homeowner's own system which causes the backup, some feel that resultant loss should not be excluded because of the overall context of the water damage exclusion and other policy provisions. The literal wording, however, clearly excludes any backing up through a sewer or drain, and should be interpreted accordingly in the absence of a contrary expression by the insurer.

A sump is "a pit, well or the like in which water or other liquid is collected; a chamber at the bottom of a machine, pump, circulation system, etc., into which a fluid drains before recirculation or in which wastes gather before disposal." (R)

The wording in (c.) appears straightforward and understandable, but a Florida court has held the exclusion may not be applied as to leaks from the plumbing system of the house, although below ground.³ The insured had a concrete slab floor. An underground leak washed out a hole. When the water was pumped out from beneath the house to repair the pipe, the house settled, causing additional damage. The insurer relied on this exclusion but the court held it had no reference to leaks within the plumbing system of the house; that all of the damage, including settling, was proximately caused by the leak and thus covered. See also 6.065.

For types of water damage specifically covered, see 6.065, 6.066 and 6.067.

6.034 POWER FAILURE.

All forms exclude:

Power Failure means the failure of power or other utility service if the failure takes place off the "residence premises." But, if a failure results in a loss, from a Peril Insured Against ensues on the "residence premises," we will pay for the loss caused by that peril.

This exclusion deals principally with spoilage losses from failure of refrigeration power. If, for example, freezer contents were lost because lightning struck the power generating source, the loss would not be covered. If the lightning struck the electrical junction box attached to the insured's dwelling, causing the power failure, the loss would be covered.

If there is widespread damage causing power failure, such as a hurricane damaging the generating source, power lines and the insured's own connection, an interpretive question seems to arise. If the insured's connection is damaged with power lost before cut-off to the general area, are the resultant spoilage losses covered? Individual views may differ.

Endorsement HO 04 98, Refrigerated Personal Property, provides $500 coverage for losses due to power service interruption or mechanical failure. There is a $100 deductible.

6.035 NEGLECT.

Tying into Section I Conditions which require the insured to protect property from further damage after a loss, the policy also excludes loss caused by neglect:

Neglect means neglect of the "insured" to use all reasonable means to save and preserve property at and after the time of a loss.

Reasonableness is the key to the exclusion's applicability. Persons cannot be expected to risk life and limb to save property. But if, for example, after widespread hurricane damage the insured left the dwelling open as an invitation to looters, when it could readily have been locked, an insurer might rely upon this exclusion (as to the part of the loss which involved property taken by looters).

6.036 WAR AND NUCLEAR.

Generally excluded are loss from all manner of war-related actions and nuclear incidents. The nuclear hazard is excluded because those who deal with fissionable materials have absolute liability to anyone damaged by their operations and a special nuclear insurance pool applies for damage caused.

6.037 INTENTIONAL LOSS.

Intentional Loss means any loss arising out of any act an "insured" commits or conspires to commit with the intent to cause a loss.

In the event of such loss, no "insured" is entitled to coverage, even "insureds" who did not commit or conspire to commit the act causing the loss.

An insured who voluntarily and intentionally damages property (arson, for example), will be denied recovery. When more than one interest is involved, however, the rule in Florida is that an innocent insured will not be penalized by the acts of a guilty one. In the sole Florida case on this question, a divorced husband and wife lived apart but still had joint ownership of the dwelling and the Homeowners policy named both as insureds.⁴ The husband had intentionally set the fire and the insurer denied any coverage. The court held that the wife, having had no complicity, could not be denied the policy protection. While the question of a husband and wife living together might seem a different one, the court broadly stated the rule that the fraudulent act of a named coinsured does not void the policy protection to an innocent coinsured.

The Florida Supreme Court has held that vandalism "by the wife of the assured, hostile to him and without his consent, when the property damaged was in the common residence of the assured and his wife" was covered as to damage to the husband's property.⁵The Court was interpreting an "all-risk" policy, but the decision would appear to apply to the named peril as well.

Given that current Florida case law conflicts with the clear intent of new policy wording, the courts may be called upon to interpret the contract when dealing with the public policy issue of protecting the rights of an innocent insured.

6.038 ADDITIONAL "ALL-RISKS" EXCLUSIONS.

The following general exclusions appear only in the HO-3:

B. We do not insure for loss to property described in Coverages A and B caused by any of the following. However, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered.

1. Weather conditions. However, this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in A. above to produce the loss;

2. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body;

3. 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 part or all of any property whether on or off the "residence premises".

In its filing, ISO gives the following explanation for the exclusions:




6.04 UNSTATED EXCLUSIONS.

Some causes of loss are not specifically excluded, yet are not covered for public policy reasons. The policy need not be explicit as the courts simply will not enforce the contract against the insurer.

When the insured is engaged in illegal activities, other than intentional destruction of property, there may be a denial of rights to policy benefits but the rules cannot be so clearly stated. Examples of extremes:

1. If an insurer could show that a dwelling was being used primarily for heavy drug trafficking operations, it might successfully deny the claim. But discovery of a small amount of marijuana on the premises for personal use of the insured would not provide a basis for denial.
   
   
2. As compared to intentionally setting fire to the house, if an insured were burning leaves in the yard, in violation of a municipal ordinance, and the house caught fire, the insurer could not rely on the illegality of the insured's actions to deny the claim.

Variations on the illegal actions theme must be viewed by the courts on a case-by-case basis.

6.05 PERILS AND EXCLUSIONS BY CAUSE OF LOSS - COVERAGES A, B AND C.

This unit takes a "cause of loss" approach to analyze perils covered and limitations thereon, for all Homeowners forms (except HO-6 - see Unit Ten). The causes of loss are listed in the order in which they appear in named perils forms, followed by analysis of "all-risk" forms differences.

6.051 CATASTROPHIC GROUND COVER COLLAPSE

Coverages A, B and C - covered under all forms by endorsement HO 01 09.

Prior to the 2007 Legislation, the peril of sinkhole was required by all admitted carriers. Then in 2007, the legislature added a new defintion, catastrophic ground cover collapse, and also changed the options that carriers had in issuing property policies. Florida Statute 627.706 added the definition of catastrophic ground cover collapse and gave the insured options on whether they chose to have sinkhole coverage or catastrophic ground cover collapse.

There is no longer a requirement that carriers issue property policies with sinkhole coverage. Instead, carriers must now issue property policies that include coverage for catastrophic ground cover collapse instead of sinkhole coverage. Florida endorsement HO 01 09 now includes the following definition:

Catastrophic Ground Cover Collapse

"Catastrophic ground cover collapse" means geological activity that results in all of the following:

1. The abrupt collapse of the ground cover;
   
   
2. A depression in the ground cover clearly visible to the naked eye;
   
   
3. Structural damage, other than settling or cracking, of a building or structure insured under this policy, including the foundation;
   
   and
   
   
4. The building or structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that building or structure.

If a policy is issued without sinkhole coverage, the carrier must offer sinkhole coverage, and may charge an additional premium, and the 14-point, bold-font, notice specified in the statute (FS 627.706) must appear in the policy.

As you can tell by reviewing the statute, catastrophic ground cover collapse is more limited than sinkhole coverage.

If an insured wants to include the peril of sinkhole then ISO endorsement HO 23 94 is used to provide the coverage.

6.052 FIRE.

Coverages A, B and C - covered under all forms.

A "fire" is defined as "the phenomenon of combustion as manifested in light, flame and heat and in heating, destroying and altering effects" (W); "state, process or instance of combustion in which fuel or other material is ignited and combined with oxygen, giving off light, heat and flame." (R) Thus, a counter top, scorched by placing upon it a pan from a gas burner stove element, has not been damaged by a fire."

The distinction must be made between fires which are "friendly" and those which are "hostile." A friendly fire is one contained in its intended place; a hostile fire is one which has escaped such intended bounds. Courts have rather consistently held that fire as a named peril covers only damage from hostile fires (no Florida cases). Thus, personal property accidentally dropped into a fireplace, barbecue or incinerator is not covered; neither is paint blistering on walls from a heater placed too close. Although the origin of the fire may be friendly, once it escapes (for example, spark from fireplace ignites rug) the resultant damage is covered under the peril of "fire."

6.053 LIGHTNING.

Coverages A, B and C - covered under all forms.

The term "lightning" means only electric discharges in the atmosphere by natural forces - not anything emanating from man-made devices.

6.054 WINDSTORM.

Coverages A, B and C - covered under all forms. See also 4.07 for property not covered and 6.03 for water damage exclusions.

What is a windstorm? No precise answer can be suggested. Dictionary definitions all refer to storms with little or no rain, which would eliminate hurricanes and so must obviously be rejected as a reflection of the intent. There are no Florida cases on the question. Florida Jurisprudence suggests: wind of unusual violence; it need not have either the cyclonic or whirling features usually accompanying tornadoes or cyclones, but must assume the aspect of a storm - that is, an outburst of tumultuous forces.7 But that is still not precise. Obviously including a hurricane (winds 74 m.p.h. or more) and, beyond much doubt, a gale (32 m.p.h. +), it would not include a moderate breeze (which might blow through an open door or window and knock an object off a table). A purely ad hoc suggestion: perhaps, at a minimum, a thunderstorm accompanied by gusty winds should be considered a covered cause.

Interior damage limitation:

This peril includes loss to watercraft of all types and their trailers, furnishings, equipment, and outboard engines or motors, only while inside a fully enclosed building.

This peril does not include loss to the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening.

For HO-3 and HO-4 this limitation, applies only to Coverage C.

When a window is broken by the wind, this is considered a part of the wall and resultant inside damage is covered. What is not covered: rain entering through door thresholds, around window frames, under roof eaves, from defective flashing.

Note that damage done by the force of a windstorm entering through a window left open would be covered. The requirement for exterior damage applies only to damage done by rain, snow, sleet, sand, or dust, not by the windstorm itself.

Watercraft limitation:

Coverage C - Forms HO-2, HO-3, HO-4, and HO-8 exclude damage to watercraft and their trailers, furnishings, equipment and outboard motors, when not inside a fully enclosed building.

Windstorm coverage may be excluded on properties eligible for coverage by Citizens Property Insurance Corporation by attachment of endorsement HO 04 89, Windstorm or Hail Exclusion.

Effective July, 2007, an insurer required to offer windstorm coverage must make available to its policyholder the option to exclude hurricane or windstorm coverage from the structure. This option requires the policyholder to personally write, sign, and date the following statement:

"I do not want the insurance on my (home/mobile home/condominium unit) to pay for damages from windstorm or hurricanes. I will pay those costs. My insurance will not."

If the property has a second interest (mortgage or lein), a written statement approving of such an election by the policyholder must be obtained from the secured interest.

6.055 HAIL.

Coverages A, B and C - covered under all forms, subject to all of the same limitations and exclusions as for windstorm - see 6.054.

6.056 EXPLOSION.

Coverages A, B and C - covered under all forms.

Over the years, courts have struggled with the term "explosion" as imprecise (having to differentiate from "implosion," for example, which is "a bursting inward"). Usually, dictionary definitions have been relied upon and refer to a violent bursting or expansion accompanied by noise and caused by a sudden release of energy. The interpretive problems, however, have generally been raised in industrial rather than residential contexts.

A question has been raised, and appears unresolved, over whether damage caused by intentional blasting is covered by the explosion named peril. That issue is not present under an "all-risks" coverage.

6.057 RIOT OR CIVIL COMMOTION.

Coverages A, B and C - covered under all forms.

"Riot" is not defined in the Florida Statutes. It has been defined by Florida courts as "a tumultuous disturbance of the peace by three persons or more, assembling together of their own authority with an intent mutually to assist each other against any who shall oppose them in the execution of some enterprise of a private nature, and the execution of same in a violent and turbulent manner to the terror of the people, whether the act intended was of itself lawful or unlawful."⁸

Black's Law Dictionary provides a definition of civil commotion: "an uprising among a mass of people which occasions a serious and prolonged disturbance and infraction of civil order not attaining the status of war or an armed insurrection; it is a wild and irregular action of many persons assembled together."

All Homeowners forms exclude "insurrection" as a part of the war exclusion. It thus became necessary to distinguish insurrections from riots and civil commotions for the urban civil disturbances of recent years (Watts, Detroit, Miami). Indeed, local officials and the media frequently referred to these events as insurrections. Generally, industry experts agreed that insurrection should be considered as involving a combined effort based on an organized pattern or program, with an intent directed toward overthrow of government and taking over its powers. Insurers did not rely on the insurrection exclusion in the civil disturbances.

When damage has been caused by acts not within the above definitions, because of number of persons involved or other elements, coverage generally will be afforded under the vandalism or malicious mischief cause of loss (6.061).

6.058 AIRCRAFT.

Coverages A, B and C - covered under all forms.

Self-propelled missiles and spacecraft are included. Damage caused by "sonic boom" is covered as damage caused by aircraft.

6.059 VEHICLES.

Coverages A, B and C - covered under all forms, subject to differing conditions:

Loss caused by a vehicle owned or operated by a resident of the residence premises (whether or not an insured):

HO-8 - no coverage.

HO-2 - no coverage for loss to a fence, driveway or walk.

HO-3, HO-4, HO-5 - no limitations of coverage.

Note that damage caused by a vehicle would include damage to the vehicle (if it is covered property). For example, if the insured on a riding mower accidentally collided with other covered property, the damage to both my other property and the mower would be covered as having been caused by a vehicle (or to the mower only, if it alone was damaged).

This peril also applies to damage to non-auto property in an auto collision (example: property in insured's trunk, damaged when rear-ended by another auto).

Note the peril does not confine itself to land vehicles. Dictionary definition of vehicle: "any means in or by which someone travels or something is carried or conveyed; a means of conveyance or transport" (R). Thus, boats are "vehicles" and loss of personal property when a boat capsizes or sinks has been viewed as damage by vehicle (courts in other states have so held; no Florida court cases on the question).

6.060 SMOKE.

Coverages A, B and C - covered under all forms, subject to differing conditions:

Smoke from agricultural smudging or industrial operations:


Smoke from fireplaces:



Smoke which is not "sudden and accidental":

An example of smoke not "sudden and accidental" might be the type event which has occurred in areas of Florida wherein "bog" areas burned for an extended period and emitted heavy layers of smoke.

6.061 VANDALISM OR MALICIOUS MISCHIEF.

Coverages A, B and C - covered under all forms.

The two terms, "vandalism" and "malicious mischief," have technically different definitions. To combine and synthesize, however, this peril covers damage from willful, deliberately mischievous or malicious acts.

There may be some question about coverage under a named perils policy for destructive acts by very young children. Florida Jurisprudence states the peril does not cover "damage resulting from an act committed by a child of tender years."⁹ The authority, however, is a circuit court case involving denial of coverage for acts of the insured's two-year old son. Circuit court decisions do not have the force of law.

Vacancy provision - suspension of coverage:

Homeowners forms provide that if the dwelling was vacant for more than 60 days immediately before the loss, coverage does not apply, with the proviso that a dwelling being constructed is not considered vacant.

"Vacant" means empty. Thus, in contemplation of no Coverage C exposure, HO-3 excludes vacancy only as to Coverages A and B.

A Florida court, interpreting the vandalism vacancy provision in a Homeowners policy, stated:

The decision refers to a fire, but the fire was set by vandals. It is interesting to note that the court recognized the insured had slept overnight in the dwelling, less than 30 days prior to the loss, on a cot carried in and out for that purpose.

In another Florida court decision, it was held that when a policy is issued on a vacant building, with the knowledge it is vacant, the insurer may not deny coverage in reliance on a vacancy clause.¹¹

Standard Homeowners rules do not provide any basis for a vacancy permit, in order to provide coverage beyond the 60-day period.

6.062 THEFT.

a. This peril includes attempted theft and loss of property from a known place when it is likely that the property has been stolen.

Coverages A, B and C - covered under all forms, subject to differences and various conditions. HO-8 has a special limit - see Unit Seven.

"Theft" means any act of stealing (larceny, breaking and entering, robbery, sneak thievery) and coverage includes any damage caused by a theft or attempted theft.

Florida law as set forth by the courts provides that intent is necessary to support a theft claim. The Florida Supreme Court stated:

The taking of personal property of another, without his consent, with the intent to permanently deprive him of it, or the intentional dealing with the property of another, without his consent, in such a manner as to create an unreasonable risk of permanent loss, constitutes an "intent to steal."¹²

Thus, if one with no intent to return it, borrows or rents the insured's covered property, or secures it by trick or device, or purports to be purchasing but gives a worthless check, a theft has occurred.

When theft is covered as a named peril (HO-2, Coverage C of HO-3, HO-5, HO-4, and HO-8), coverage includes "loss of property from a known location when it is likely that property has been stolen." Obviously, this introduces an element of subjectivity. The insured is not bound to prove that a theft occurred, but is given the burden of showing a likelihood of theft. A Florida court ruled that baggage which disappeared after being checked with an airline, and was never recovered, could not be presumed to have been lost by theft, and recovery was denied.¹³

When an "all-risk" coverage is involved (Coverages A and B under HO-3), protection is included for property which has simply disappeared, so no presumption of theft is required.

Exclusion - theft by an insured.

Exclusion - dwellings under construction.

All Homeowners forms, named peril or "all-risk," contain the following exclusion:

b. This peril does not include loss caused by theft:

(1) Commited by an "insured"

(2) In or to a dwelling under construction, or of materials and supplies for use in the construction until the dwelling is finished and occupied;

(3) From that part of a "residence premises" rented by an "insured" to someone other that another "insured"; or

(4) That occurs of the "residence premises" of :

(a) Trailers, semitrailers and campers;

(b) Watercraft of all types, and their furnishings, equipment and outboard engines or motors; or

(c) Property while at any other residence owned by, rented to, or occupied by an "insured", except while an "insured" is temporarily living there. Property of an "insured" who is a student is covered while at the residence the student occupies to attend school as long as the student has been there at any time during the 60 days immediately before the loss.

If a Homeowners policy is issued on a dwelling under construction, when is it "finished and occupied"? There is one Florida court case on the issue; because the question arises frequently, the decision is quoted at some length:¹⁴

The house was being built by the appellee-husband as an owner-contractor. At the time of the theft, it was completed and capable of occupancy; in fact, it was being occupied by the husband at the time of the robbery.

The exterior of the house was completed; all windows and doors were installed and capable of being secured by locks or by closing; the electrical work was completed, as was the plumbing. All appliances were installed, hooked up and capable of working; air conditioning was completed and operable. The inside of the house was completed, except for buffing the floors and some minor painting, neither of which would affect occupancy. The only unfinished governmental requirements were final inspection of electrical, mechanical and plumbing, and issuance of certificate of occupancy. The appellee-husband had, in fact, moved into the house and the appellees had moved a considerable amount of furnishings and personal effects into the house preparatory to the entire family moving into the premises. Therefore, for all practical purposes, the house was completed, except for the aforementioned inspections and the hooking up of the permanent electric, which is done only after the power company is notified by the County that all final inspections have been made.

The appellant contends that until the final inspections have been made and a certificate of occupancy is issued, a house is not completed and capable of being occupied. A house on which construction has been completed but has not had a final inspection is, indoes not require further work to be done but, rather (as its name indicates), is final, meaning the work has been finished prior to the actual inspection. The mere fact that an interval of time elapses between completion of the construction and actual inspection does not render the construction incomplete. fact, completed. The inspection merely evidences the fact that the County has notice of completion of the work and has approved it. The inspection.

The exclusionary wording would not appear to exclude theft of materials and supplies relating to alterations or additions to an existing residence.

Exclusion - rental of premises.

Named peril theft excludes loss of property from that part of a residence premises rented by an insured to anyone other than another insured. "All-risk" (HO-5) coverage does not include this exclusion.

Recall Coverage C basically excludes any coverage for property in an apartment regularly rented or held for rental to others. This theft exclusion goes further by eliminating coverage for all property in a rented room, apartment, rented half of a duplex, rented other structure, or anywhere on the residence premises if entirely rented to others.

Endorsement HO 05 41 Extended Theft Coverage for Residence Premises Occasionally Rented to Others (replaces 04 80 under the new HO-2000) covers theft from any part of the residence. This includes the rented portion of the residence and includes coverage even if the theft is caused by the tenant, roomer or boarder.

Exclusions — property away from residence premises:

HO-8 provides no coverage for theft losses away from the residence premises, except for property contained in a bank, trust or safe deposit company or public warehouse (but may be added with endorsement HO 04 30, Theft Coverage Increase). HO-2, HO-3 (Coverage C) and HO-4 are subject to the off-premises exclusions which follow. HO-5 is not subject to these exclusions.

There is no coverage for theft occurring at any residence, other than the residence premises, which is owned, rented to or occupied by any insured, except while any insured is temporarily residing there. This should not be read as requiring an insured's physical presence at the time of the theft. For example, if the insured rented a vacation cottage for a month, and during the month was gone for a few days on a trip, it is suggested that coverage should clearly apply at the temporary residence for the time away.

Coverage C has a limitation that only 10% of its limit applies to property usually located at an insured's premises, other than the defined residence premises (7.084). An exception applies in that the 10% limitation does not apply to property being moved into a newly acquired principal residence for 30 days after the move is begun. This might raise expectations that coverage at the new residence will be the same as at the prior one. Until an insured begins residing at the new residence, however, there is no theft coverage on property that has been moved!

This exclusion does not apply to property stored in a general warehouse or a completely rented miniwarehouse, because such is not a residence.

An exception to the exclusion provides that property of an insured student is covered at a residence away from home if the student has been there at any time during the 45 days immediately before the loss. An obvious problem can arise if the student leaves property in an apartment or dormitory for the summer and returns in the fall to find a theft having occurred. There may be no way to establish the time of the event.

Also excluded for theft away from the residence premises are watercraft (including their furnishings, equipment and outboard motors), and trailers and campers. Recall that "residence premises" is defined to be that location shown in the declarations as such (where the "main dwelling" is located). Thus, watercraft and equipment are not covered for theft at a secondary residence (even though the insured may be occupying it at the time) nor in storage elsewhere, even if stored in an enclosed building.

It is suggested that portable fishing gear (rods, reels, tackle) should not be considered furnishings or equipment.

There may be differing interpretations on what is a "camper" (other than a camper trailer). Dictionary definition: "a compact, portable room, like a trailer without wheels, for mounting on a pickup truck and used for camping or extended motor excursions." (R).

6.063 FALLING OBJECTS.

Coverages A, B and C - not covered under HO-8; covered under all other forms.

A "falling object" may be considered to be any object that is on a downward plane by the force of gravity.

Interior damage limitation:

To building - under HO-2 (HO-3 not limited).

To contents - under HO-2, HO-3 and HO-4.

The forms exclude interior damage unless the roof or an exterior wall (includes windows) is first damaged by a falling object. For example, if a tree falls on the dwelling all resultant damage, inside and outside, is covered. But if a heavy object were dropped in a bathtub, causing cracking or chipping, the loss would not be covered by HO-2 but would be under HO-3. A bottle of indelible ink, spilled on an oriental rug, would not be covered under HO-2, HO-3 or HO-4, but would be under HO-5 (depending on one's interpretation of "pollutants" - see 6.07).

In a Florida case, a Homeowners insured (not HO-5) was having the dwelling roof repaired when a rainstorm struck and caused damage to contents.15 The court denied recovery-the roof had not been damaged by wind to bring coverage under the windstorm peril, and the argument that rain is a "falling object" was rejected.

Exclusion of damage to the object:

When falling objects is covered as a named peril, there is no coverage for damage to the falling object itself.

Thus, if one dropped an electric typewriter on the floor, the typewriter would not be covered under an HO-2, HO-3 or HO-4, but would be under an HO-5 (but breakage of certain types of fragile articles is not covered under HO-5).

6.064 WEIGHT OF ICE, SNOW OR SLEET.

Coverages A, B and C - not covered under HO-8. Covered in other forms, but not reviewed because of virtual nonapplicability to Florida exposures.

6.065 ACCIDENTAL DISCHARGE OR OVERFLOW OF WATER OR STEAM.

a. This peril means accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or from within a household appliance

Coverages A, B and C - not covered under HO-8, covered under all other forms, subject to differing conditions.

In considering this peril, it should be remembered there is a general exclusion for damage from backing up of sewers or drains - see 6.03. See also 6.066 and 6.067 as to damage to and from systems and appliances.

The general intent of this peril is to cover occurrences such as plumbing pipe leaks, water leaking from a hot water heater or air conditioner, or water overflowing from a blocked-up sink, toilet, washing machine, etc.

With increased popularity of waterbeds, the question has frequently been raised as to whether damage caused by leakage would be covered under this named peril. A waterbed is surely not a "plumbing, heating or air conditioning system" (although it often involves use of a heater). Is it a "household appliance"? Definitions of "appliance" found in unabridged dictionaries may provide a small degree of support for such interpretation. On balance, however, it appears that a waterbed is "furniture" rather than "appliance," and most observers would likely agree that coverage for personal property damage from leakage would be covered only under HO-5; and only under HO-3 for building damage.

Costs of repairing system:

Coverage on either a named peril or "all-risks" basis covers cost of tearing out and replacing any part of the building necessary to repair the system or appliance from which the water escapes, but excludes loss to the system or appliance itself.

Exclusion - vacancy:

HO-2 contains the same 60-day vacancy exclusion as for vandalism - see 6.061.

HO-3 does not contain the exclusion.

Exclusion - freezing:

Named peril coverage excludes losses under this peril from freezing, but it is picked up under the separate freezing peril, subject to different conditions. For both named peril and "all-risk" coverage from freezing, see 6.067.

Exclusion - off-premises source:

If the damage from discharge or overflow is at the residence premises, but comes from an off-premises source such as a broken water main (or, as to HO-4, from another building):

HO-2, HO-4: not covered.

HO-3: covered under Coverages A and B. not under C.

HO-5: covered - A, B and C.

Special Issue - underground plumbing leaks:

A frequent question raised within the context of this peril is whether or not there is coverage for underground plumbing leaks. A Florida case was cited in 6.033 in which a house was damaged when the water was pumped from beneath it, after a pipe had leaked under the concrete slab. The insurer tried to deny based on the Water Damage Exclusion, but the court ruled that the exclusion did not apply to water from the plumbing system. However, an important point in the case is that there undeniably had been actual damage. More difficult to resolve are situations where the underground plumbing leaks are discovered before any damage to the house occurs. Except for the gurgling of water under the floor, or unusually high water bills, there is no other evidence of a problem, and no discernable damage. Should the insurer pay to repair the leak? On the one hand, as there has not yet been any damage, it is clear that coverage is not intended to apply, since the policy language applies only to physical loss to property. On the other hand, the form wording specifically states that tearing out and replacing any part of the building to repair the system is included, although damage to the system itself is not covered. Given this possible ambiguity, and assuming that if the leak goes unrepaired for long there will most certainly be damage, many insurers opt to nip the situation in the bud by covering the cost of repairs. But there is no guarantee of this, and should not be relied upon in discussions with insureds.

6.066 SUDDEN AND ACCIDENTAL TEARING APART, CRACKING, BURNING OR BULGING.

Coverages A, B and C - not covered under HO-8, covered under all other forms.

Note this named peril, unlike the previous one for discharge and overflow, does not apply to plumbing and heating systems generally. As modern air conditioning or sprinkler systems do not tend to tear apart, crack, burn or bulge, the principal benefit from this peril for the Florida homeowner is for one of the described causes to afflict the home's hot water heater. Coverage is for damage to the system and to other property which results.

Freezing is excluded - see 6.067.

6.067 FREEZING.

a. This peril means freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance but only if you have used reasonable care to:

(1) Maintain heat in the building; or

(2) Shut off the water suppy and drain all systems and appliances of water.

Coverages A, B and C - not covered under HO-8, covered under all other forms.

Freezing, through expansion and/or contraction, may cause damage to the systems or appliances, and also cause damage from discharge or overflow of water. There may be resultant costs of tearing out and replacing parts of the building to effect repairs. All such damage is covered.

Exclusion - vacancy or unoccupancy:

For definition of vacancy, see 6.061.

"Unoccupancy," in insurance forms which define the term and general insurance references, seems to intend a state wherein a dwelling contains personal property but is not being lived in. The interpretation in Florida, however, is narrower than that. As defined by a Florida court:

In the case before the court, the insured had been systematically removing furnishings from the house, had ceased living there, had the electricity turned off, and seemingly had no intent to return, when the fire occurred. With the court's emphasis on intent of the insured, it appears that an insured who is gone from home for several months, or who has a secondary dwelling which is lived in at infrequent intervals, never experiences a state of "unoccupancy."

The "or being constructed" portion of the exclusion is more precise, although disagreements might occur over when construction is ongoing versus completed. See 6.062 for discussion.

6.068 ARTIFICIALLY GENERATED ELECTRICAL CURRENT.

Coverages A, B and C - not covered under HO-8, covered under all other forms.

The peril and its limitations are stated in the HO-3 form as follows:

16. Sudden and accidental damage from artificially generated electrical current.

"Artificially generated electrical current" occurs when a power surge comes into the home's electrical system, usually from some negligence of the power company. If the surge comes from lightning, the loss is treated under that peril; if a fire ensues from an artificially generated surge, the loss is treated under that peril.

6.069 VOLCANIC ERUPTION.

This peril does not include loss caused by earthquake, land shock waves or tremors.

6.07 ALL OTHER CAUSES OF LOSS - COVERAGES A AND B.

Not covered under HO-2, HO-4 or HO-8. Covered if not excluded under HO-3 or HO-5.

Subject to the general exclusions (6.03 and 6.031) and those already cited in the causes of loss reviewed in 6.051 through 6.069, the additional exclusions listed below apply.

Note: Although damage directly caused by these causes is excluded, if there is ensuing loss which is not excluded, such ensuing loss is covered. For example, if mechanical breakdown (which is excluded) causes a fire to occur, the damage from the fire is covered.

1. Freezing, thawing, etc. to certain property.

The following exclusion applies but is not analyzed because of general inapplicability to Florida risks:

(2). Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a:

(a) Fence, pavement, patio or swimming pool;

(b) Footing, foundation, bulkhead, wall, or any other structure or device that supports all or part of a building, or other structure; or

(c) Retaining wall or bulkhead that does not support all or part of a building or other structure; or

(d) Pier, wharf or dock;

2. Wear and tear.

3. Marring.

Dictionary definitions of "mar": "to detract from the good condition or perfection or wholeness or beauty of; cause to be injured or damaged or defaced or blemished" (W); "to damage or spoil to a certain extent; render less perfect; usually refers to an external injury." (R)

The marring exclusion cannot be applied too literally. All damage to property is, in a sense, "marring." It is suggested the intent is to exclude only occurrences such as, for example, accidental scratching of the finish on property, but not anything resulting from the named perils listed in 6.051 through 6.069.

4. Deterioration.

Exclusion of deterioration refers to loss of value from the process of deterioration and should not be read as causing any contradiction with replacement cost provisions (see Unit Seven) if the deteriorated property is damaged otherwise by an unexcluded cause.

5. Inherent vice.

Inherent vice is a quality within an object that results in the object's tending to destroy itself, deterioration being inevitable because of the inherent nature of the object. In Homeowners, the exclusion of inherent vice seemingly does nothing that is not within the "deterioration" exclusion.

6. Latent defect.

According to Florida Jurisprudence, latent defect is one which is hidden from the eye, or cannot be discovered by ordinary inspection.17 For example, if there were a latent defect in household electrical wiring, there would be no coverage for replacement of the wiring (but if the wiring suddenly emitted smoke or caught fire, all the resultant damage would be covered).

7. Mechanical breakdown.

If mechanical breakdown is caused by an unexcluded cause of loss - for example, lightning striking an air conditioning compressor-the loss should not be considered excluded. See 6.09. Coverage for mechanical failure which damages property stored in refrigerators or freezers may be added with endorsement HO 04 98 for up to $500 ($100 deductible).

8. Smog.

Definitions: "a fog made heavier and darker by smoke and chemical fumes" (W); "a mixture of fog and smoke." (R)

It should be clear that a mixture of 99% smoke and 1% fog should not be considered smog for exclusionary purposes. No suggestion is offered here for appropriate quantification. See 6.09.

9. Rust or other corrosion, mold, wet or dry rot.

10. Pollutants.

"Pollutants" are defined as "any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste."

Form excludes damage by pollutants, unless they are released due to a Coverage C peril. For example, if a tree crashes through the window and knocks cleaning solvents, pool chemicals, paint, or laundry bleach off a shelf and onto the carpet, the damage done by the chemicals would be covered. However, if such chemicals are simply spilled while being used, there appears to be no coverage. This interpretation is probably not what the forms drafters had in mind. In fact, paint spillage is often seen in industry advertisements as one of the advantages of "all-risks" coverage.

By contrast, if a home is built over an old landfill where chemicals were buried, and these pollutants rise to the surface causing damage, such damage is clearly what the exclusion is intended to eliminate from coverage.

11. Settling, shrinking, bulging, or expansion, including resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings.

As previously stated, Florida courts would not enforce this exclusion when a house settled because of a subsurface plumbing leak (see 6.033) or in a partial collapse situation (see 5.07). In other scenarios, the exclusion should be interpreted literally, but enforceability in Florida courts seems questionable if the settling, etc. is associated with another unexcluded event.

12. Birds, vermin, rodents, or insects.

"Vermin": "small animals (as lice, bedbugs, mice) that tend to occur in great numbers, are difficult to control, and are offensive as well as injurious" (W); "noxious, objectionable, or disgusting animals collectively, especially those of small size which appear commonly and are difficult to control, as flies, lice, bedbugs, cockroaches, mice, rats, etc." (R)

"Rodent": "gnawing or nibbling mammals...including mice, squirrels, beavers, etc." (R)

With the above definitions, the application of the exclusion should be fairly clear, although differences could occur over whether a specific kind of varmint ought to be classified as vermin or rodent.

13. Animals owned or kept by an insured.

Previous editions of Homeowners forms used the words "domestic animals," which raised the question about domesticated "wild" animals kept as pets, and standard "domestic" animals such as dogs which might be 'wild" or feral. The new wording seems to resolve such issues.

6.08 ALL OTHER CAUSES OF LOSS - COVERAGE C.

Not covered under any form except HO-5.

"All-risk" Coverage C in HO 5 is subject to the general exclusions as stated in 6.03 , those already cited for causes of loss in 6.051 through 6.069, and all of the Coverages A and B "all-risk" exclusions listed in 6.07. The following additional exclusions apply:

1. Breakage of fragile articles.

Coverage C in HO 5 excludes:

C. Under Coverage C caused by:

1. Breakage of eyeglasses, glassware, statuary, marble, bric-a-brac, porcelains and similar fragile articles other than jewelry, watches, bronzes, cameras and photographic lenses.

However, there is coverage for breakage of the property by or resulting from:

(b) Smoke, other than smoke from agricultural smudging or industrial operations;

(c) Explosion, riot, civil commotion;

(d) Aircraft, vehicles, vandalism and malicious mischief;

(e) Collapse of a building or any part of a building;

(f) Water not otherwise excluded;

(g) Theft or attempted theft; or

(h) Sudden and accidental tearing apart, cracking, burning or bulging of:

(1) A steam or hot water heating system;

(2) An air conditioning or automatic fire protective sprinkler system; or

In summary, if breakage is caused by any of the named perils in 6.051 through 6.069 (except from falling objects or weight of ice, snow or sleet) the exclusion does not apply. In addition, breakage caused by earthquake is specifically covered.

The principal basis for disagreement is over what should be considered a fragile article. The dictionaries say that glassware is anything made of glass (especially but not limited to tableware). Thus, a hanging mirror is glassware, but a framed mirror (not being wholly glass) may not be.

The term "similar fragile articles" must be taken to mean not everything that is fragile, but everything similar to eyeglasses, glassware, etc. that is fragile.

2. Dampness, temperature.

Examples: mildew (not the same as mold, otherwise excluded), freezing, softening or melting from heat.

Presumably, the "extremes of temperature" exclusion should not apply to freezer contents which spoil, caused by unexcluded power loss. See 6.09.

3. Property being serviced.

This exclusion may apply to work performed either by the insured or others-the drapes that were shrunk or torn in cleaning-ruined laundry-the TV set that falls off the repair shop's bench, or is damaged by the insured's own tinkering in attempting repairs - damaging furniture when attempting refinishing, upholstering.

Some have questioned whether laundering and dry cleaning processes are "renovating" but dictionary definitions go beyond "to make like new" to include "to refresh, revive, restore to freshness."

4. Watercraft and equipment.

This exclusion generally intends to eliminate coverage for marine perils. It is suggested, however, that sinking, etc. caused by named peril listed in 6.051 through 6.069 is not intended to be excluded. See 6.09.

5. Governmental action.

Emphasis is upon the words "by order of." Property destroyed through an act of a governmental authority, without an order that such be done, is not excluded.

6. Acts or decisions.

This excludes only damage due to acts of above, not ensuing covered losses. This brings Coverage C into line with Coverages A and B "all-risk" General Exclusion 2.b. - See 6.038.

6.09 A NOTE ON "ALL-RISK" INTENT.

As one selects an HO-3 or HO-5, at added cost, in preference to named perils coverage, there is a natural expectation that the coverage will be broader in every respect; that the "all-risks" exclusions will not take the coverage back to something less than the lower-cost forms.

As a matter of fact, under literal form wording, some losses can be described which are clearly covered by an HO-2, but are undoubtedly excluded by application of the strict wording of HO-3 or HO-5. Some examples:

1. Insured's large dog runs into glass door, breaking it - HO-2 covers glass breakage from any cause not in the general exclusions; "all-risk" excludes loss caused by domestic animals.
   
   
2. Power surge causes air conditioning compressor to burn out - HO-2 covers loss from electrical currents artificially generated; "all-risk" excludes mechanical breakdown.
   
   
3. Lightning strikes a boat, causing it to sink - HO-2 covers lightning and watercraft is covered property; "all-risk" excludes sinking of watercraft.

It is strongly suggested that interpretations such as the foregoing, to make "all-risk" more restrictive than named perils, were not intended by the forms drafters. Those who feel otherwise cannot, logically, stop short of ridiculous extremes. For example, all damage done by vandals is covered by HO-2. If vandals break into the insured's home, and the damage caused is the marring of table tops, mirrors, counter tops, etc. by sharp objects, could any reasonable person suggest the intent was for all such damage to be covered by HO-2 and all excluded by HO-5? Surely not.

It is therefore suggested that any insurer should be willing to commit itself to the proposition that, in the standard Homeowners forms, no coverage interpretation will be more restrictive under "all-risk" than under named perils. More specifically:

In a survey of 19 leading agency companies, FAIA sent a copy of this analysis in 6.09 and asked for comments. The results:

6.10 EXAMPLES ADVANTAGES OF "ALL-RISK."

Following are some examples of coverage afforded by "all-risk" (HO-3, HO 5), not covered by the broadest of named perils (HO-2). Items 1 through 10 refer to causes of loss which relate to the named perils, with coverage broadened. Item 11 deals with miscellaneous other causes. No such listing can be exhaustive - unheard-of types of loss continually appear.

Notes - (examples relating to covered personal property damage refer only to HO-5):

1. a. Examples: eyeglasses, wrist watch accidentally dropped into fireplace, incinerator, barbecue grill.

b. Examples: space heater placed too close to walls (causing paint to peel) or furniture (causing discoloration); patio screening from barbecue grill too close.

Notes: in some instances, the "marring" exclusion may have to be considered. Under HO-5, it is believed the "extremes of temperature" exclusion is not intended to apply to this kind of situation.

2. a. Examples: rain driven by wind through open windows, under door thresholds, around window frames, under roof eaves, through flashing.

c. Examples: TV antenna and mast, erected too high without adequate support, blows over; wind causes door to slam, blows lamp over, etc.

Note: HO-5 - does not include breakage of certain fragile articles.

Notes - (examples relating to covered personal property damage refer only to HO-5):

6. Example: smoke from a long burning "bog" fire; smoke from an oil lamp. Note: all forms exclude smoke from agricultural smudging or industrial operations.

7. a. Examples: property misplaced, mysterious disappearance.

b. Examples: property stolen from anywhere on residence premises if entirely rented to others, or from any portion rented, or from rented other structure.
Note: partial coverage is available under HO-3 with endorsement HO 04 80, Residence Rental Theft.

c. Example: insured has vacation cottage (no specific Homeowners policy applicable to the cottage), property stolen while insured is residing elsewhere.

8. Examples: chandelier drops from ceiling, damaging itself and other property; heavy object dropped into tub or sink, causing cracking or chipping; kitchen cabinets fall from wall; accidentally dropping a typewriter, TV, clock.

Note: HO-5 does not include breakage of certain fragile articles.

Notes - (examples relating to covered personal property damage refer only to HO-5):

12. b. Example: counter top damaged from hot pan placed directly upon.
Note: some might consider the example not covered because of the "marring" exclusion, but such a loss is frequently cited as being covered by "all-risk."

c. Example: thunder, so close and so violent, it causes vibrations of sufficient severity as to crack objects, make property fall off walls, from shelves (effects similar to minor earthquake).

d. Refers to cost of tearing out and replacing walls to replace defective wiring—not replacement of wiring, likely to be excluded as latent defect or other "all-risk" exclusion.

e. Examples: stepping through attic rafters, cracking ceiling; heavy piece of furniture cracks floor.

f. Examples: crayons or painting on walls; roughhouse play.

g. Examples: objects down toilet or sink drain, causing need to tear out and replace or repair.

h. Example: digging in yard, accidentally puncture part of septic tank installation.

Notes - (examples relating to covered personal property damage refer only to HO-5):

12. i. Example: overflow from an oil heating system.

j. Examples: paint splashed on wall, floors; acid spilled; tar from roof being repaired, dripped down painted walls.

k. Examples: insured's gun accidentally discharges in house; bullet enters house from outside source.

I. Example: insured's son and "friend" get into fight in house — objects broken, blood on carpeting.

m. Example: wild raccoon, squirrel, bird gets into house; pet of neighbor, as long as not kept by insured.

n. Examples: building — hammer against wall; personal property — one object knocked against another; i.e., mop handle into glass of cabinet, moving piece of furniture and striking clock.

*See 6.07, item 10.

6.11 PERILS AND EXCLUSIONS - OTHER COVERAGES.

6.111 COVERAGE D.

The cause of loss which will produce payment under Coverage D is that cause which produced the uninhabitable state being covered for direct damage. For example, under HO-3, if the unlikely cause is damage to personal property only, then the Coverage C named perils are the covered causes of loss. If it is building damage which causes uninhabitability, then coverage is "all-risk" and covered building damage means that Coverage D also applies.

6.112 TREES, SHRUBS, PLANTS.

All Homeowners forms cover for the following named perils only:

Fire

Lighting

Explosion

Riot or civil commotion

Aircraft

Vehicles not owned or operated by a resident of the residence premises

Vandalism or malicious mischief

Theft

6.113 PROPERTY REMOVED.

The additional Coverage for property while being removed from a premises endangered by a covered peril, and for 30 days while removed, is covered for "direct loss from any cause." There are no specific "all-risk" exclusions, so the only causes of loss not covered are those in the General Exclusions for Section I (see 6.03).

6.114 LANDLORD'S FURNISHINGS.

This is an Additional Coverage in the HO-2 , HO-3, and HO-5 for appliances, carpeting, and other household furnishings in a rented apartment on premises. Coverage is provided for the Broad Form Named Perils, excluding Theft. See 4.04.

6.115 SCHEDULED PERSONAL PROPERTY.

When property is specifically covered under endorsement HO 04 61, Scheduled Personal Property, coverage is "open-peril" subject to general exclusions of wear and tear, gradual deterioration, insects, vermin, inherent vice, war and nuclear.

There are no special exclusions or provisions for jewelry, furs, cameras, musical instruments or silverware. Other classes of property which can be covered under HO 04 61 have limitations as follows.

The Homeowners 2000 program offers a new scheduled personal property endorsement (HO 04 60) This endorsement offers agreed value loss settlement for all articles scheduled. The HO 04 61 only offers agreed vaule on fine arts.

Golfer's equipment covers only for fire and burglary (visible signs of forcible entry required) as to loss of golf balls.

Fine arts is subject to the following special exclusions (HO 04 60):

a. Repairing, restoration or retouching process;

b. Breakage of art glass windows, glassware, statuary, marble, bric-a-brac, porcelains and similar fragile articles. We cover loss by breakage if caused by:

(1) Fire or lightning;

(2) Explosion, aircraft or collision;

(3) Windstorm, earthquake or flood;

(4) Malicious damage or theft;

(5) Derailment or overturn of a conveyance.

We do not insure loss, from any cause, to property on exhibition at fair grounds or premises of national or international expositions unless the premises are covered by this policy.

In addition, coverage applies worldwide.

Stamp and coin collections are subject to these exclusions:

a. Fading, creasing, denting, scratching, tearing or thinning;

b. Transfer of colors, inherent defect, dampness, extreme of temperature, or depreciation;

c. Being handled or worked on;

d. The disappearance of individual stamps, coins or other articles unless the item is:

(1 ) Described and scheduled with a specific amount of insurance; or

(2) Mounted in a volume and the page it is attached to is also lost;

e. Shipping by mail other than registered mail.

However, we do not insure loss, from any cause, to property in the custody of transportation companies or not part of a stamp or coin collection.

6.12 UNIT SIX FOOTNOTES

1. Phoenix Ins. Co. v. Branch, 234 So.2d 396 (Fla. 4th DCA 1970).
2. McCorkle v. Penn Mutual Fire Ins. Co., 213 So.2d 272 (Fla. 3d DCA 1968).
   
3. Hartford Accident & Indemnity Co. v. Phelps, 294 So.2d 362 (Fla. 1st DCA 1974).
   
4. Auto-Owners Ins. Co. v. Eddinger, 366 So.2d 123 (Fla. 2d DCA 1979).
5. Sun Insurance Office, Limited v. Clay, 133 So.2d 735 (Fla. 1961).
6. **Removed**
   
7. 31 Fla. Jur. 2d §703.
8. City of Daytona Beach v. Brown, 273 So.2d 124 (Fla. 1st DCA 1973).
9. 31 Fla. Jur. 2d §723.
   
10. Hehemann v. Michigan Millers Mutual Ins. Co., 240 So.2d 851 (Fla. 4th DCA 1970).
11. Poland v. Phillips, 371 So.2d 1053 (Fla. 3d DCA 1979).
12. American Fire & Casualty Co. v. Sunny South Aircraft Service, Inc., 151 So.2d 276 (Fla. 1963).
    
13. Travelers Indemnity Co. v. Universal Time, Inc., 430 So.2d 987 (Fla. 3d DCA 1983).
14. State Farm Fire and Casualty Co. v. Oskierko, 334 So. 2d 61 (Fla. 3d DCA 1976).
    
15. New Hampshire Ins. Co. v. Carter, 359 So.2d 52 (Fla. 1st DCA 1978).
    
16. Independent Fire Insurance Co. v. Butler, 362 So.2d 980 (Fla. 1st DCA 1978).
17. 31 FLA. Jur 2d §702.