SC Court Defines Surface Water Under Insurance Policy

Law360, New York (October 13, 2010, 1:18 PM EDT) -- A state court has decided that surface water exclusions in insurance policies do not extend to waters collected in retention facilities that later dump onto an adjoining property, a boon for M&M Corp. in its suit against Auto-Owners Insurance Co. over a denied coverage claim for a flooded hotel.

A divided South Carolina Supreme Court ruled Monday that “surface water,” as defined by state law, ceased to be surface water for the purposes of the insurance policy after it was gathered in a centralized system and...
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