Old brick mansion in New Jersey with a fireplace that the insured uses in the winter. During a routine cleaning, the chimney sweep noticed some cracking in the chimney bricks. He says (1) it's probably due to age and normal use because over time the heat from the fires takes a toll; he says (2) in his estimation the cracking has existed for 3+ years.
Notable Timestamps
[ 00:15 ] - He encourages the insured to submit an insurance claim anyway. Policy = ISO HO 00 03 05 11. The adjuster knows there is an exclusion for "cracking" but also knows that fire is a covered peril. Is there coverage for the chimney?
[ 01:18 ] - Trivia Time! How many fireplace-related deaths happened in the United States?
[ 04:18 ] - The "cracking" exclusion appears alongside other long-term normal-usage exclusions and would normally be considered in that context.
[ 06:18 ] - But, could we say that FIRE was the proximate cause in order to find coverage? Not necessarily. Courts created a distinction between "friendly" fires like stoves or fireplaces vs. "hostile" fires that "escape" their enclosures.
[ 08:55 ] - See Karadontes v. Continental Ins. Co., 354 A.2d 696 (N.J. App. 1976).
[ 09:40 ] - The fact that the "date of loss" when the cracking began was three years ago likely does not mean the insureds provided late notice. Courts created the discovery rule for cases such as this, starting the clock at the time the loss was discovered.
[ 12:50 ] - Who would notice a crack in their fireplace?
[ 13:50 ] - In civil law, the preponderance of the evidence standard applies, so in this case the chimney sweep's claims would likely be accepted.
[ 15:00 ] - Only sudden or accidental soot or smoke is typically covered.
[ 15:33 ] - Tim provides a recap of the scenario and the points above.
Your PLRB Resources
Chimney Damage-Faulty Maintenance or Covered Fire Loss? – Claims Magazine - https://www.plrb.org/documents/chimney-damage-faulty-maintenance-or-covered-fire-loss-claims-magazine/
Thermal Cracking Inside Chimney – Fire or Wear and Tear? – PCQ.2023.08.19.twh.a - https://www.plrb.org/documents/thermal-cracking-inside-chimney-fire-or-wear-and-tear-pcq-2023-08-19-twh-a/
Windstorm: Downdraft Into Chimney Disperses Soot – PCQ.2018.04.30.rcw.b - https://www.plrb.org/documents/windstorm-downdraft-into-chimney-disperses-soot-pcq-2018-04-30-rcw-b/
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