The “Water Damage” exclusion incorporated in many property insurance policies is the subject of much litigation, including the scope and applicability of the “surface water” exclusion to various water damage scenarios. The New York Appellate Division, Fourth Department recently interpreted the application of the “surface water” exclusion where the source of water was not from natural precipitation. This is the second New York decision to interpret the meaning of “surface water” in the context of a property insurance policy.
Continue Reading The Water Exclusion: New York’s Fourth Department Interprets The Definition of Surface Water
Water Exclusion
Broad but not Ambiguous: Eighth Circuit Weighs In On Water Below The Surface Exclusion
By Jenna Veronneau on
Posted in Exclusions, Water Exclusion
An exclusion in a homeowner’s policy for loss resulting from “water . . . below the surface of the ground” is not limited to naturally occurring water, according to a recent decision of the Eighth Circuit Court of Appeals in Bull v. Nationwide Mut. Fire Ins. Co., 2016 U.S. App. LEXIS 9703 (8th…
New York’s Second Department Holds That Omission of Exclusion in Declination Letter Does Not Operate As Waiver
By Guest Contributor on
On April 6, 2016, New York’s Second Department issued a decision in Provencal, LLC v. Tower Insurance Company of New York, 2016 N.Y. App. LEXIS 2529 (Apr. 6, 2016) holding that an insurer does not waive application of an exclusion in an insurance policy if the insurer omits the language of the exclusion in…
When It Rains It Pours: The First Circuit Tackles a Conflux of the Rain Limitation, Flood Coverage, Surface Water Exclusion, and Efficient Proximate Cause
By J. Tyler Butts on
Posted in Water Exclusion
In Fidelity Co-Operative Bank v. Nova Cas. Co., 726 F.3d 31 (1st Cir. 2013), the First Circuit addressed what can happen when a variety of inter-related perils converge to create one loss under a policy with numerous amendatory endorsements that differ substantially from the typical commercial property policy. The insured in this case…
Hurricane Isaac Insurance Claims Adjustment: Insights from Katrina
By Caryn Daum on
Posted in Bad Faith, Water Exclusion
As insurance companies begin the process of adjusting Hurricane Isaac insurance claims, we thought it would be helpful to highlight briefly on our blog some of the key case law from Hurricane Katrina, and some key Louisiana statutes regarding insurance claim adjustment:
- Water Damage Exclusions: The Louisiana Supreme Court ruled in Sher v. Lafayette Insurance
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Sewer Backup Exclusion Found Unambiguous by Rhode Island Supreme Court
By Caryn Daum on
Posted in Water Exclusion
As mentioned previously, there appears to be an influx of court cases arising from situations where heavy rainfall affects drain and sewer systems, resulting in property damage. The Rhode Island Supreme Court was recently tasked with handling such a case, reaching the same conclusion as the Massachusetts Supreme Judicial Court did in Boazova and Surabian …