New Insurance Exclusions for "Terrorism"

Here is a copy of an interesting article written by David Dybdahl, CPCU, ARM MBA Senior Consultant, American Risk Management Resources Network, LLC

The reason I post this is because of the recent "fire" that took place at the Big Bear California Cabin where it is believed that the ex-cop Dorner was held out.  At one point the news and or LAPD stated that Dorner was considered a domestic terrorist, thus my feeling that the carrier might consider denial of the fire claim?  What are your thoughts?
Terrorism and Mold are new exclusions in many HO policies, and it will be interesting to see if the carrier tries to use it.

Jeff

"New Insurance Exclusions for Terrorism and Mold
Create Unprecedented Levels of Uninsured
Risks for Property Managers, Property Owners and Lenders.
Or
Sorry We Forgot to Tell You…
By:  David Dybdahl, CPCU, ARM, MBA
Senior Consultant, American Risk Management Resources Network, LLC
Faced with rapidly increasing and unpredictable claims costs, the insurance industry has
over the past year methodically excluded insurance coverage for mold and domestic
terrorism losses on virtually all of the property and general liability insurance policies
sold in the US. The impact on the risk management community from either of these new
exclusions individually would be significant. Together they leave a broad cross section of
insurance buyers including property managers, property owners and lenders with
unprecedented levels of newly uninsured risks.
In light of the magnitude of these loss exposures, it is surprising how complacent
insurance buyers, insurance agents and lenders have been in dealing with them. One
reason for the complacency could be that it is very difficult for insurance consumers to
put these new sources of uninsured loss exposures into perspective.  Maybe insurance
consumers would have reacted differently to the unilateral changes in their insurance
coverage if the following cover letter had been sent out explaining the new mold and
terrorism exclusions."




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