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Last Post 08/12/2009 7:34 PM by  Stormkat
Covering a "Reef Tank"
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Stormkat
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08/02/2009 10:18 PM

    Does anyone have any suggetions on how to get a "Reef Tank" covered from a Hurricane claim?  As we all know, insurance will pay for food spoilage, why can they not pay for reef tank spoilage?  Texas Windstorm is willing but needs a reason to cover.  I thought I would solict your suggestions before finishing the estimate.

    Thanks for your help!

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    Tom Toll
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    08/03/2009 10:24 AM

    The tank itself would be covered, (if damaged), however, the exotic fish are specifically excluded. If the fish were being raised to eat, then they become food items. Thats going a little far out, but, I don't see any way to cover them.

    Success is not final, failure is not fatal: it is the courage to continue that counts.
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    sdraeger
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    08/03/2009 10:28 AM
    What are you trying to cover? If the tank and equipt were damaged by the wind, yes the tank and equipt would be covered but not the fish and corals. If the equipt was damaged by voltage spikes/lightning etc it would not be covered. If you are trying to cover the fish and or coral they would not be covered because they are live animals. I suspect that the power went out and the inhabitants of the tank all died due to lack of filtration and water circulation. The 320 endorsement covers personal property damaged by changes in temperature due to physical damage to the structure and or an offsite power outage. However the policy clearly states on page 2 under property not covered that animals are not covered. Fish and corals are animals so I don't see how it could be covered. I worked Ike for TWIA and I own a reef tank also. They can be very expensive to establish and maintain but I don't see this as a covered loss.
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    Ray Hall
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    08/03/2009 10:35 AM
    Stormkat sounds like you are "tested" by a file examiner. Explain to him why this is a covered loss and I am sure he will "Cover" the loss.
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    Medulus
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    08/03/2009 12:20 PM

    I'm not sure there is enough information here to give a succinct answer. I'm not familiar with the Texas windstorm policy.  I'm also not sure what a "reef tank" is, but I can sort of put two and two together based on the previous comments. Not sure if this is homeowners or commercial. Check for inland marine (IM) forms, some of which will provide coverage for animals, if animals are what you are covering. If this is a commercial policy and the fish and coral are "stock", they would have coverage under the commercial policy as "stock" even though they are animals. If the damage is to the equipment, an equipment breakdown form may offer coverage under certain circumstances. However, since youstated that the cause of loss is hurricane, it is unlikely that it will qualify as an "accident under an equipment breakdown form. Again, if this is a commercial policy, the property enhancement endorsement or similar form should be checked for coverage. This may provide coverage for power interruption that is broader than the basic commercial forms.

    There are three things you need to do.  First, when in doubt, read the policy to find the answer.  Second, when you think you know whether there is coverage, read the policy to see if you are right.  And third, when you are sure you know whether there is coverage, read the policy just in case.

    Steve Ebner CPCU AIC AMIM

    "With great power comes great responsibility." (Stanley Martin Lieber, Amazing Fantasy # 15 August 1962)
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    Stormkat
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    08/12/2009 7:34 PM

    Thank you for the responses.  I do not see anyway of covering the loss of the fish but will try to get coverage for the tank, equipment and "decorative coral."  If you have any further ideas, please let me know, otherwise I will keep you posted.

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