Calif. Plumbs The Depths Of Water Damage Exclusions

Law360, New York (April 10, 2013, 12:00 PM EDT) -- A recent decision by the California Court of Appeal confirms the willingness of courts in California to enforce exclusions for water damage in property policies, thus precluding coverage for the policyholders’ alleged water-related losses.

First-party property insurance policies, in both commercial and personal lines, typically contain a provision excluding losses caused by, among other things, water that backs up or overflows from a sewer or drain, water progressively seeping or leaking from a plumbing system or household appliance and water that flows or seeps through a...
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