another insurance question - coverage exemptions?

[TundraTower]

We have our TT, vehicles, and house all insured with ALFA, who I understand is the largest personal underwriter in Alabama. I've been their customer for 50 years. Good claims service, seemingly reasonable rate movement, seems to be decent price but I've only shopped around once.

Last week I received notice that in 2 months they will exclude from the TT coverage any loss caused by wet or dry rot, mold, mildew, yeast, spores, or deterioration, WHETHER CAUSED DIRECTLY OR INDIRECTLY by the above.

To a layman this seems to exclude pretty much all water damage, even that caused by covered events. Say we drive under a tree limb that cuts the roof but we aren't aware of it until the ceiling starts turning black?? The roof cut is covered, but the mildew seems to delete the whole claim from consideration. I have formally requested a clarification.

Meanwhile I have an appointment this week with an independent agent to shop for either stand-alone TT insurance or maybe the entire package of business. Progressive seems to get mostly good reviews here on the forum, but that's another question.

MY QUESTION IS THIS: Are any of you aware of similar exclusions in your RV/TT policies from other companies????????? I just wonder if ALFA is starting something new, or just catching up with everybody else?

[TundraTower]

OP here to close the loop.

ALFA's home office confirms this new exemption excludes pretty much all water damage regardless of cause. Even if it is caused by a covered event like floods or impact. More risk than I am willing to assume.

This morning I bought a stand-alone TT policy from Progressive. Price was competitive but I spent a few bucks more for options they offered that I didn't have, like liability coverage at the campsite. They handed me the 42 page contract with my credit card receipt, so there should be no surprises.

As some of you have pointed out Progressive DOES exempt mold, mildew, wet deterioration, etc. HOWEVER, those exemptions state that such loss WIL BE COVERED if it is caused by another event that is covered (like an impact or a flood). That's reasonable.

[MikeJulieGDImag]

That's very similar to our homeowners insurance. We've had a claim with our homeowners policy and they explained how they handle water damage. If its immediate damage from something like flooding, they would cover it. But if its damage that takes time to develop such as rotting due to not addressing an issue in a timely manner, they will not cover it.

[Community Alumni]

CarnationSailor wrote:

I disagree. Negligence IS covered with most forms of insurance. If I negligently cause an auto accident, I'm covered. If I leave a pot cooking on the stove while I run to the store and a fire results, I'm covered. Etc., etc.

I'm talking about negligence where someone has failed to inspect their roof for so many months that it resulted in irreparable damage to the interior of the coach. Same would happen if someone failed to winterize their trailer and ended up with freeze damage. I'm not talking about everyday negligent activities. I'm talking about failures to maintain the coach to prevent and/or mitigate damages. That's why the exclusion clauses exist.

[ktmrfs]

around here, the same exclusion is being applied to home insurance as well especially regarding roof leaks. The insurance companies are even sending out inspectors periodically to stop by homes and do an inspection of the gutters and visual look at roofs. If they find plugged or marginal gutters or roofs with heavy moss buildup, or look near replacement time, out comes a letter giving a period of time to correct or cancel insurance. Multiple insurance company inspectors were making the rounds in our county this last summer.

[CarnationSailor]

proxim2020 wrote:
As with most forms of insurance, negligence isn't covered. In this case not only did the operator cause the damage, but also failed find and report the damage in a reasonable time frame.

I disagree. Negligence IS covered with most forms of insurance. If I negligently cause an auto accident, I'm covered. If I leave a pot cooking on the stove while I run to the store and a fire results, I'm covered. Etc., etc.

[Ralph_Cramden]

proxim2020 wrote:
It's a pretty common exclusion. A lot of companies have included them for some years now. I know for sure that both Progressive and National General have that same exclusion in their policies. A small caulking failure can completely total a trailer so I see why it exists. Normally these clauses say that water damage isn't covered unless it's caused by covered events. So if the roof failed due to a branch falling then it's covered. You're on the hook if you drive under a branch and don't discover the damage until months later.

As with most forms of insurance, negligence isn't covered. In this case not only did the operator cause the damage, but also failed find and report the damage in a reasonable time frame.

Without pulling out the book, Progressives is worded something to the effect of..... damage due to water and mold not covered if due to continued water intrusion from normal events. Or some berbiage such as that.

[Community Alumni]

It's a pretty common exclusion. A lot of companies have included them for some years now. I know for sure that both Progressive and National General have that same exclusion in their policies. A small caulking failure can completely total a trailer so I see why it exists. Normally these clauses say that water damage isn't covered unless it's caused by covered events. So if the roof failed due to a branch falling then it's covered. You're on the hook if you drive under a branch and don't discover the damage until months later.

As with most forms of insurance, negligence isn't covered. In this case not only did the operator cause the damage, but also failed find and report the damage in a reasonable time frame.

[TundraTower]

Sure we have a duty to act quickly, but can only do that when we know it has happened. I don't inspect my roof at every destination. Lets say that tear was at the roof/wall seam and above the kitchen cabinets. I don't think we would notice water damage inside the cabinets until it got pretty bad.

Or lets say the tear happens on the way home and we park it at uncovered storage for several weeks or months and then discover the damage when we prepare it for the next outing.

A roof tear could be repaired for $2-300, but the resulting mold in the walls and cabinets before we found it could come close to totaling an inexpensive TT like ours. And according to this new endorsement, the mold/deterioration is not covered, whether the loss is caused "...directly or indirectly by the ....(items listed above)..." .

[mike-s]

It's perfectly reasonable, and expected, that insurance requires you to mitigate any further damage from an event (your "rot caused by roof tear" example). If you get a roof tear and water gets in, as long as you address the situation quickly the repair will include drying the water intrusion to avoid rot. And, with the terms you gave, that could include replacing water saturated wood (it wouldn't have had time to rot). They're just not going to cover it if you only realize/claim 6 months after the fact and it's too late.

I'll sell you a policy which covers all hazards and also allows you to be negligent with maintenance/repair. How much coverage do you want? Add 10% and send me a check. Coverage is limited to a single claim.