A federal district court in Florida ruled an earth movement exclusion barred insurance coverage for structural damage to a home after about 4,000 gallons of water leaked from a water heater.

The Case

Barbara and Charles Hatch asserted about 4,000 gallons of water flooded their home after the leak. They notified their insurer, GeoVera Specialty Insurance Co., which inspected the property, hired a company to mitigate the damage and issued a payment to the Hatches to repair the property.