Therefore, the “tear out” would be considered part of the limits for the dwelling damage. The appellate court disagreed, relying on the plain meaning of the policy language, “the limit of liability for all damage to be covered property provided by this endorsement is $10,000 per loss,” in determining the “tear out” costs were not “damage” but that “tear out” costs are referenced as an item to be covered as part of a loss under the ensuing loss for water damage provision. Therefore, no additional insurance benefits were owed. The insurance company disagreed, arguing that the $10,000 LWD limit applied to both the water damage and the “tear out” cost. The policyholder argued that additional coverage existed, claiming they were owed more for the “tear out” to replace the undamaged concrete slab, which was necessary to access the pipes which caused the loss. The insurance company acknowledged coverage but only paid $10,000 under the Limited Water Damage Coverage (“LWD Endorsement”). Similar to most cast iron pipe claims, the policyholders had an overflow of water in their home stemming from deteriorated cast-iron pipes, which caused damage to the property. In a recent case, 1 the Fifth District Court of Appeal reviewed an order granting summary judgment in favor of the policyholder. Even in accepted claims, insurance companies will often lowball a policyholder, leaving them with costly excess repair fees that they are unprepared to take. Unfortunately, insurance companies often try to deny pipe damage claims based on carefully worded exclusions such as “wear and tear” or claiming the pipes have reached the natural end of their lifespan. Florida commercial and residential properties are even more susceptible to corrosion due to Florida’s salt and moisture-rich environment. Cast iron pipe systems are actively corroding across the country.
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