Why The Corrosion Exclusion Remains Strong: Part 1
By Philip Silverberg, William Wilson and Andrew Rice (June 22, 2017, 4:20 PM EDT) -- Corrosion exclusions have been commonplace in first-party property insurance policies for decades, as evidenced by the sheer number of jurisdictions and decisions addressing them. The exclusion is intended, in part, to prevent a contract of insurance from being converted to a warranty or maintenance contract on the life of property insured. At the same time, corrosion is a peril to be excluded no matter how or when it occurs, and many policies simply exclude "corrosion" without reference to its physical or temporal origins. Unfortunately, policyholder counsel often see a coverage declination under a corrosion exclusion as an invitation to argue that some other, more proximate cause or event was responsible for a loss, even though corrosion played a central role. Many courts have rejected these attempts to read the corrosion exclusion out of the policy....
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