Property policies provide cover for claims resulting from insured damage, but cannot be relied upon to provide full protection for environmental liabilities.
There are several reasons for this. Firstly, cover is only provided in respect of specific buildings and does not as a general rule include land. Secondly, whilst resultant environmental damage to insured buildings may be covered, if contamination enters the soil remediation costs are unlikely to be picked up. Thirdly, many property policies incorporate a qualified or absolute pollution exclusion. Finally, where coverage is provided it is often tied to sudden and accidental events only and sub-limited at an inadequate value.