Understanding What Specific Damage Is Covered By An Insurance Policy
Even when an insurance company is required to cover some damages arising from a specific event, such as water damage, that does not necessarily mean the policy covers all damages incidental to the event. Of course, an insurer is required to pay a valid claim in good faith. But they are not under any legal obligation to go beyond the scope of the policy’s coverage. Florida Appeals Court: Insurer Only Liable for Overflowed Toilet, Not the Damaged Pipe That Fed It Take this recent decision from the Florida Third District Court of Appeal, State Farm Insurance Company v. Shotwell. This case involved a dispute over water damage to a private residence. The homeowner’s toilet overflowed, causing substantial water damage to his master bathroom, master bedroom, and adjoining parts of the house. The homeowner held an “all-risk” policy with State Farm. The insurer acknowledged coverage for some of the water damage and issued an initial payment of $888.72, which accounted for the homeowner’s deductible and depreciation. The homeowner then hired a public adjuster to assess the total amount of the property damage. Working with a construction company, the adjuster determined the toilet overflowed “due to a blockage in a sagging and corroded pipe” located underneath the kitchen cabinets. This pipe serviced the master bathroom. To access and fix that pipe, the construction company therefore needed to tear out and replace part of the kitchen cabinets. An appraiser ultimately determined the total amount of the homeowner’s damages came to around $139,000. State Farm said it would only pay some of that amount. Of note here, the insurance company argued it was not responsible for the costs of tearing out part of the kitchen to access the defective pipe. Dissatisfied, the homeowner sued State Farm for breach of contract. A trial judge sided with the homeowner and ordered State Farm to pay the full amount of damages. On appeal, however, the Third District partially reversed. It agreed with State Farm that the policy language did in fact exclude the costs of tearing out the kitchen cabinets. The key provision of the insurance policy stated that when property loss was caused by water “escaping” from a system, State Farm would pay to tear out and replace “only that particular part … necessary to gain access to the specific point of that system … from which the water” escaped. In other words, State Farm was liable for damages to the toilet–since that was the point where water actually escaped into the house–and not the pipe in the kitchen. It might sound pedantic, but the Third District said that was how the policy was worded. Contact a Florida Insurance Lawyer Today Insurance disputes often turn on highly specific policy language. Insurers and insured parties alike need to carefully review and understand their policies before heading into court. An experienced Tampa mold and water damage attorney can help. Contact HD Law Partners today if you are involved in a potential insurance dispute and need legal representation. Source: https://3dca.flcourts.gov/content/download/793820/opinion/210356_DC08_10062021_103741_i.pdf Posted in Mold Water Damage | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us