Why does the Liability and Property Pool exclude property coverage for pilings? Many municipalities own or operate marinas and it seems this exclusion creates a gap in coverage.

There are several reasons for exclusions in insurance policies. Two reasons are that exclusions help insurers avoid uninsurable perils; and they eliminate specialized coverage that requires unique underwriting expertise that is available from other sources.

Pilings are used to support docks, bridges or buildings without changing the bottom elevation of the water body. Pilings are subject to deterioration by water and other natural forces, and are subject to damage by shifting or subsidence. Depending on the materials the pilings are made of, water saturation can reduce their load bearing capacity. None of these exposures are fortuitous and thus not the subject of standard property insurance.

The National Flood Insurance Program includes pilings in its definition of covered property, if the pilings are used to support a covered building. Members who are interested in insurance for pilings are encouraged to learn more about the NFIP by visiting their web site at www.fema.gov/nfip.