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Does Homeowners Insurance Cover Destruction of Property by a Government Entity?
Jeff Ryan - CLU, ChFC, AIA, CIC, CPCU
May 22, 2022
Review your policy with your agent for specifics
Most property insurance forms contain specific language regarding coverage in the event of what is typically referred to as “governmental action”.
For example, below is a snippet of the exclusionary verbiage found in the common ISO Homeowners policy:๏ปฟ
Another example is below from an ISO Commercial Property Form:
You can see that both the personal and commercial versions of the ISO property forms generally respond if the destruction of property is to prevent the spread of fire. One can safely assume that other forms of governmental action will be excluded in most property policies.
๏ปฟNon-ISO policy forms may have different language and some policies may include unique coverage extensions. Consult your agent or company’s claim representative or read your entire policy for specific reference.
About the Author: Jeff Ryan has been a licensed insurance agent since 1978, later becoming a full-time insurance professional in 1983. Since then, he has been the principal of The Ryan Agencies with offices in Hornell, Jasper, and Wellsville. The agencies serve approximately 15,000 clients in New York and Pennsylvania. Jeff holds numerous credentials including the Chartered Property & Casualty Underwriter (CPCU), Certified Insurance Counselor (CIC), Accredited Advisor in Insurance (AAI), Chartered Life Underwriter (CLU), and Chartered Financial Consultant (ChFC) designations. He holds a Master's Degree from the American College. Jeff enjoys writing about all things insurance and welcomes your questions and feedback.
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