Inherent Vice

>> Thursday, July 01, 2010

Inherent vice is an object's tendency to deteriorate.

Ray Burnham, in his most excellent, Burnham's Insurance Dictionary, uses examples of meat putrefying, iron rusting, and people aging.

Property insurance almost always excludes inherent vice, though most policy forms do not use the term.

The ISO property form excludes inherent vice with the following words:

"Rust or other corrosion, decay, deterioration,
hidden or latent defect or any
quality in property that causes it to damage
or destroy itself;"

Class dismissed.

0 Comments:

Post a Comment

About This Blog



Scott Simmonds fixes broken insurance, uncertain coverage, and painful premiums. He consults on, but never sells, insurance.

To subscribe to Scott's FREE monthly email newsletter go to his website, www.ScottSimmonds.com and enter your email address.
Alternatively, email Scott at Scott@ScottSimmonds.com.


Copyright 2000-2011 Scott Simmonds
Fair Use Permitted With Attribution

  © Blogger template Webnolia by Ourblogtemplates.com 2009

Back to TOP