Our one and only Matt Mulholland will teach you today in the “ensuing loss show”! 😎

Matt will share the screen and go through Citizens HO-3 policy to explain it to you in detail! (it works in the same way for commercial policies.)

Ensuing loss policy is giving you an exception to an exclusion. There are many ensuing loss provisions and let’s five into it!

Ensuing loss provision can get you pretty far with things. When there’s an exclusion a lot of times there is ensuing loss! A lot of the newer policies starting to lose those ensuing loss provisions, so be careful!

🔴 If you want to know more, do not hesitate to reach out to Matt directly at Mathew@listentothisbull.com

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Some history on Ensuing loss:
“Ensuing loss clauses were developed after the San Francisco earthquake of 1906. Earth movement caused about $80 million in property damage.

Gas emitted from pipes broken during the shaking sparked a fire, which spread to the rest of the city and caused another $400 million in other property damage (in 1906 dollars).

Symbolically: earth movement (excluded peril) → earthquake damage (excluded loss) → fire (covered peril) → fire damage (ensuing loss). Insurers argued that under the ordinary “proximate cause” rule, the earth movement was the peril that set the “chain of events in motion,” and that because earth movement was excluded, the fire damage was excluded, too.

After the San Francisco earthquake, the California legislature enacted a set of statutes to prevent insurers from disclaiming coverage for fires ensuing from earthquakes. To comply with these and similar statutes in other states, first-party insurers added exceptions to their earthquake exclusions preserving coverage for ensuing fires.

Later, ensuing loss exceptions were incorporated into many other types of exclusions.

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