Platek v. Town of Hamberg

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After a subsurface water main abutting Plaintiffs’ property ruptured, causing water to flood into and damage their home’s basement, Plaintiffs made a claim under their homeowners’ insurance policy issued by Defendant, Allstate Indemnity Company. Allstate disclaimed coverage based on a provision in the policy excluding coverage for loss caused by water on or below the surface of the ground, including water that seeps through any part of the residence premises. Plaintiffs commenced this action alleging that Allstate had improperly disclaimed coverage because their claim fell within the exception to the water loss exclusion. Supreme Court declared that Plaintiffs’ loss was covered under the policy and that Allstate was required to pay the claim. The Appellate Division modified the order by vacating the declaration and otherwise affirmed, concluding that the policy was ambiguous and should be construed in favor of Plaintiffs. The Court of Appeals reversed, holding 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. View "Platek v. Town of Hamberg" on Justia Law