Leakage or seepage exclusion applies to water leaking from which systems?

• A. Water from plumbing, HVAC, or appliance systems
• B. Wind damage to roof
• C. Fire suppression systems
• D. Theft of property

Answer: (A)

Leakage or seepage exclusion targets water that leaks or seeps from within the building’s own systems—specifically plumbing, heating, ventilation, and air conditioning (HVAC) systems, or appliances connected to those plumbing systems. Damage from a slow drip or a failed appliance that causes water to seep into walls or floors is typically excluded because it often results from wear, tear, or lack of maintenance rather than a covered peril. This is why water damage from these internal systems is not covered under the leakage/seepage exclusion. By contrast, damage from external perils like wind on a roof or unrelated events such as theft are not governed by this same exclusion.