Q: Does a dwelling and fire policy (DP-3) include coverage for damage to an air conditioning unit due to an animal urinating on it?

Response 1: This must have been happening for a while for corrosion to occur.

The current ISO DP-3 excludes damage to the dwelling caused by:

(8) Any of the following:

(c) Smog, rust or other corrosion, mold, wet or dry rot;

…

(h) Nesting or infestation, or discharge or release of waste products or secretions, by any animals.

If the air conditioner is a window unit, it's probably personal property and neither corrosion nor animal damage are named perils.

Response 2: I would question the coverage under the policy, but the named insured should identify the pet owner and pursue recovery from them. 

Response 3: Current and several prior editions of the DP-3 exclude damage caused by animals, with an exception for damage not otherwise excluded. “Corrosion" is specifically excluded.

But I’m curious about how it was determined that the corrosion was the result of animal urination. This almost certainly must be the result of multiple exposures to the urine, since it seems highly unlikely that one exposure would corrode metal. The reason I bring this up is because if the damage actually resulted from vandals applying urine or some kind of chemical, it may be covered.

Response 4: Form DP 00 03 12 02 excludes losses caused by "Birds, vermin, rodents, insects or domestic animals." Unless the claims adjuster could prove loss was caused by one of the excluded causes, coverage should apply.

Response 5: If the animal is owned by the insured, there is an exclusion for damage caused by "animals owned or kept by the insured." There are also exclusions for pollution and discharge of waste products by any animal. If the animal is owned by a neighbor, there should be coverage under their liability insurance. If the animal is a stray, the first exclusion would still void coverage. 

Response 6: As it seems unclear which animal caused the damage, you'd have to demonstrate conclusively that it wasn't, in the words of the exclusion, “Birds, vermin, rodents, insects or domestic animals" to effect coverage.

Response 7: On the surface, this appears to be an aging unit—I cannot fathom what animal could cause this much damage in one visit. Maintenance is not covered under any contract using DP-3 language—or any other property form, for that matter. You would need to establish a date of loss and promptly report to the carrier of record. 

The property owner may want to explore other avenues to protect the exterior of the unit.

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