PARDALIS & NOHAVICKA INSURANCE COVERAGE UPDATE: “ENSUING LOSS” PROVISION DOES NOT MAKE AN EXCLUDED LOSS REAPPEAR AS A COVERED LOSS

The Court of Appeals, in critical decision for the insurance bar, held that the policy’s unambiguous language excluded from coverage the water damage to Plaintiffs’ home, and the exception did not nullify the water loss exclusion or render it ambiguous. Underground water pipe ruptured causing water to flood into and severely damage claimant’s home. The homeowner policy excluded property damage caused by water, with an exception for certain sudden and accidental direct physical losses caused by fire, explosion or theft. Attempting to come under the exception, Claimants asserted the loss was caused by an explosion of the water main. Theory rejected.

Platek v. Town of Hamberg (NY)
http://www.courts.state.ny.us/reporter/3dseries/2015/2015_01483.htm