diff --git a/plugins/InspectionGadgets/InspectionGadgetsAnalysis/src/com/siyeh/ig/errorhandling/UnnecessaryInitCauseInspectionBase.java b/plugins/InspectionGadgets/InspectionGadgetsAnalysis/src/com/siyeh/ig/errorhandling/UnnecessaryInitCauseInspectionBase.java
index a2f84a9c963c..00e43cf76656 100644
--- a/plugins/InspectionGadgets/InspectionGadgetsAnalysis/src/com/siyeh/ig/errorhandling/UnnecessaryInitCauseInspectionBase.java
+++ b/plugins/InspectionGadgets/InspectionGadgetsAnalysis/src/com/siyeh/ig/errorhandling/UnnecessaryInitCauseInspectionBase.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2016 JetBrains s.r.o.
+ * Copyright 2000-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -18,15 +18,14 @@ package com.siyeh.ig.errorhandling;
 import com.intellij.openapi.util.Ref;
 import com.intellij.psi.*;
 import com.intellij.psi.controlFlow.DefUseUtil;
-import com.intellij.psi.util.InheritanceUtil;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.siyeh.InspectionGadgetsBundle;
 import com.siyeh.ig.BaseInspection;
 import com.siyeh.ig.BaseInspectionVisitor;
+import com.siyeh.ig.psiutils.DeclarationSearchUtils;
 import com.siyeh.ig.psiutils.ExpressionUtils;
 import com.siyeh.ig.psiutils.ParenthesesUtils;
 import com.siyeh.ig.psiutils.TypeUtils;
-import com.siyeh.ig.psiutils.DeclarationSearchUtils;
 import org.jetbrains.annotations.Nls;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -78,7 +77,7 @@ public class UnnecessaryInitCauseInspectionBase extends BaseInspection {
       }
       final PsiExpression qualifier = ParenthesesUtils.stripParentheses(methodExpression.getQualifierExpression());
       final PsiNewExpression newExpression = findNewExpression(qualifier);
-      if (!isCauseConstructorAvailable(newExpression) || !canExpressionBeMovedBackwards(argument, newExpression)) {
+      if (!isCauseConstructorAvailable(newExpression, argument.getType()) || !canExpressionBeMovedBackwards(argument, newExpression)) {
         return;
       }
       registerMethodCallError(expression);
@@ -114,8 +113,8 @@ public class UnnecessaryInitCauseInspectionBase extends BaseInspection {
       return result.get().booleanValue();
     }
 
-    public static boolean isCauseConstructorAvailable(PsiNewExpression newExpression) {
-      if (newExpression == null) {
+    public static boolean isCauseConstructorAvailable(PsiNewExpression newExpression, PsiType causeType) {
+      if (newExpression == null || causeType == null) {
         return false;
       }
       final PsiMethod constructor = newExpression.resolveConstructor();
@@ -145,8 +144,7 @@ public class UnnecessaryInitCauseInspectionBase extends BaseInspection {
             }
           }
           final PsiParameter lastParameter = parameters[parameters.length - 1];
-          final PsiType type = lastParameter.getType();
-          if (InheritanceUtil.isInheritor(type, CommonClassNames.JAVA_LANG_THROWABLE)) {
+          if (lastParameter.getType().isAssignableFrom(causeType)) {
             return true;
           }
         }
diff --git a/plugins/InspectionGadgets/InspectionGadgetsAnalysis/src/com/siyeh/ig/psiutils/TypeUtils.java b/plugins/InspectionGadgets/InspectionGadgetsAnalysis/src/com/siyeh/ig/psiutils/TypeUtils.java
index 3ed065ce136f..e435082ed30b 100644
--- a/plugins/InspectionGadgets/InspectionGadgetsAnalysis/src/com/siyeh/ig/psiutils/TypeUtils.java
+++ b/plugins/InspectionGadgets/InspectionGadgetsAnalysis/src/com/siyeh/ig/psiutils/TypeUtils.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2003-2016 Dave Griffith, Bas Leijdekkers
+ * Copyright 2003-2017 Dave Griffith, Bas Leijdekkers
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -120,6 +120,7 @@ public class TypeUtils {
     return false;
   }
 
+  @Contract("null, _ -> false")
   public static boolean expressionHasTypeOrSubtype(@Nullable PsiExpression expression, @NonNls @NotNull String typeName) {
     return expressionHasTypeOrSubtype(expression, new String[] {typeName}) != null;
   }
@@ -129,8 +130,9 @@ public class TypeUtils {
     if (expression == null) {
       return null;
     }
-    PsiType type = expression instanceof PsiFunctionalExpression ? ((PsiFunctionalExpression)expression).getFunctionalInterfaceType()
-                                                                 : expression.getType();
+    final PsiType type = expression instanceof PsiFunctionalExpression
+                         ? ((PsiFunctionalExpression)expression).getFunctionalInterfaceType()
+                         : expression.getType();
     if (type == null) {
       return null;
     }
@@ -236,7 +238,7 @@ public class TypeUtils {
     }
     final PsiClassType classType = (PsiClassType)type;
     final PsiClass aClass = classType.resolve();
-    return aClass != null && aClass instanceof PsiTypeParameter;
+    return aClass instanceof PsiTypeParameter;
   }
 
   /**
diff --git a/plugins/InspectionGadgets/testsrc/com/siyeh/ig/errorhandling/UnnecessaryInitCauseInspectionTest.java b/plugins/InspectionGadgets/testsrc/com/siyeh/ig/errorhandling/UnnecessaryInitCauseInspectionTest.java
index 2e3a36d80ac4..d78d19bbb7bd 100644
--- a/plugins/InspectionGadgets/testsrc/com/siyeh/ig/errorhandling/UnnecessaryInitCauseInspectionTest.java
+++ b/plugins/InspectionGadgets/testsrc/com/siyeh/ig/errorhandling/UnnecessaryInitCauseInspectionTest.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2015 JetBrains s.r.o.
+ * Copyright 2000-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -52,6 +52,25 @@ public class UnnecessaryInitCauseInspectionTest extends LightInspectionTestCase
                  "}");
   }
 
+  public void testIncompatibleType() {
+    doTest("import java.io.*;" +
+           "class X {" +
+           "  void m() throws Exception {" +
+           "    try {" +
+           "    }catch (RuntimeException ex) {" +
+           "       YException wrapper = new YException(\"foo\");" +
+           "       wrapper.initCause(ex);" +
+           "       throw wrapper;" +
+           "    }" +
+           "  }" +
+           "" +
+           "  class YException extends Exception {" +
+           "    public YException(String msg) { super(msg); }" +
+           "    public YException(String msg, IOException cause) { super(msg, cause); }" +
+           "  }" +
+           "}");
+  }
+
   @Nullable
   @Override
   protected InspectionProfileEntry getInspection() {