What it does
For the locations in its Schedule, CP 10 54 adds Windstorm or Hail to the exclusions of the Basic, Broad or Special Causes of Loss form or the Standard Property Policy. It removes coverage for:
- Loss caused directly or indirectly by Windstorm or Hail, regardless of any other cause or event that contributes concurrently or in any sequence.
- Rain, snow, sand or dust damage, wind-driven or not, that would not have occurred but for the Windstorm or Hail.
If windstorm or hail causes a different covered peril, that resulting loss remains covered, for example a fire. The endorsement also removes windstorm or hail from the Broad form collapse coverage, the Special form "specified causes of loss", and the property-in-transit extension.
Who sees it
Properties in coastal counties where the standard market will not write wind. The wind exposure is then placed with a state wind pool or a wind-only surplus lines policy, and the ISO policy covers everything else.
Quoting and selling notes
- Never leave a wind exclusion without a matching wind policy in place. Coordinate effective dates, limits and business income treatment between the two.
- Explain the anti-concurrent-causation wording: combined wind and water losses are excluded under this policy.
- Where wind can be kept, a percentage deductible (CP 03 21) may be the alternative.
