When a property owner is surprised by the lack of insurance coverage for a water loss, the credit worthiness of the customer may come into question.
For example, it is not uncommon to have a seven figure Category 3 water loss in a high-rise office building. The owner of that building may only have a 1% equity stake in the building and may not have millions of dollars of cash sitting around to pay an uninsured restoration bill. It is common practice today in property insurance policies to have a $25,000 mold or bacteria sublimit on a $50,000,000 office building. Banks are apparently oblivious to the functioning of fungi/mold/bacteria exclusions and do nothing to force the borrower to purchase EIL coverage in the loan covenants of the bank.