Home-Owners Insurance Company issued a "business owners policy" of property insurance which provides all-risks coverage, i.e., covering all risks or perils except those which are specifically excluded.
The "BOP" policy issued by HO contained a standard "earth movement exclusion":
The policy covered risks of physical loss unless the loss was “[e]xcluded in Section B., Exclusions” or “[l]imited in Paragraph A.4., Limitations.”
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The claim was denied pursuant to an exclusion to coverage in Section B for “[a]ny earth movement.” Home–Owners thereafter sought a declaration that it owed no duty to cover Andriacchi’s losses because the losses were excluded under the policy.
The Michigan appellate court upheld HO's denial of coverage in this case which involved damage allegedly resulting from street repair, because, the appellate court held, the earth movement exclusion was not limited to earth movement due to natural causes. Home-Owners Ins. Co. v. Andriacchi, 320 Mich. App. 52, 903 N.W.2d 197 (Mich. Ct. App. 2017).
Dennis Wall is at work on an article about interpretation and application of all-risks insurance coverage.
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