A supply pipe bursts, causing $6,000 of water damage to floors, and the pipe itself costs $900 to replace. A broad form pays:
Explanation
The accidental discharge peril pays for the damage the escaping water does, but the form does not cover the system or appliance the water escaped from, so the $900 pipe is the insured's cost while the $6,000 of floor damage is paid. Paying the whole $6,900 ignores that carve-out. Denying the claim outright confuses a sudden burst with the slow, repeated seepage the form genuinely excludes.
This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- A limb punches a hole in the roof and the rain that follows ruins a $1,800 rug. On a broad form, the rug is:
- Ash and blast from a volcanic eruption damage an insured dwelling. Under a standard homeowners form the loss is:
- The compressor in a six-year-old air conditioner burns out on a home insured on an open-perils form. The repair is:
- Wind-driven waves and rising tidal water push seawater through a home's ground floor. A standard homeowners form treats this as:
- A homeowner deliberately smashes the windows of his own house to collect on the policy. Section I:
- An earthquake ruptures a gas line and the fire that follows destroys the house. On an unendorsed homeowners form:
Last reviewed: · editorial process