In this FC&S Litigation Watch, two homeowners suffered a loss when water from a ruptured water main flooded their basement. Their insurance carrier denied the claim due to the policy's water damage exclusion. The homeowners did not argue their claim was covered, but instead argued that an exception applied because subsurface pressurized water had caused the water main to "explode," and the policy stated that explosions caused by water damage were covered as an ensuing loss.
Property & Casualty
September 01, 2024, 5:18 AM