Courtney Ferretti, Senior Account Manager discusses the importance of insuring against lengthy gas shutdowns due to leaks.
One of the claims most often submitted to our claims department is when a building has had a gas leak. When this happens, the gas company shuts off the gas and the gas isn’t turned back on until the leak is repaired. It may not be as simple as making the repair and turning the gas back on as in some cases as sometimes the risers may need to be upgraded first to meet current codes.
Repair of what is leaking isn’t an insurance issue unless the pipe/riser that leaked was damaged by a covered peril such as a fire. However, insurance will cover the property that was damaged due to the gas leak but and in most cases, there is none.
In the meantime, the owners may have stopped paying their maintenance fees because they refuse or will not live in their units without gas. This would not be covered under a loss of income under a property policy because that only applies if the income was lost due to a covered peril.
Also, most policies have some coverage in them for upgrades to meet current ordinance laws but that only applies when there was a covered peril that caused the damage.
For more information, please contact us.