The Maine Supreme Court found a homeowner's policy did not cover damages for loss of investment, undisclosed physical problems with the property, and emotional distress. Langevin v. Allstate Ins. Co., 2013 LEXIS Me 54 (Me. June 4, 2013).

   The underlying plaintiffs sued the insured after purchasing his home for $315,000. The insured allegedly misrepresented the condition of the property and failed to disclose its prior use as a junkyard. The insured's policy with Allstate defined "bodily injury" as "physical harm to the body, including sickness or disease." Property damage was defined as "physical injury to or destruction of tangible property, including loss of its use." 

   Allstate refused to defend or indemnify the insured. The parties agreed to a judgment of $330,000 and the underlying plaintiff agreed not to execute the judgment against the insured. The judgment did not specify the basis of the insured's liability nor what damages the $330,000 award redressed. 

   The plaintiffs then sued Allstate. The trial court granted summary judgment to Allstate, finding there was no "property damage" and any damages for injury to the property did not arise from an "occurrence."

   The Maine Supreme Court affirmed. Damages for loss of investment did not constitute "property damage." Damages for undisclosed physical problems were not covered because the physical problems did not arise from an "occurrence" as alleged in the underlying complaint. The physical damage to the property resulted from its actual used as a junkyard, which, according to the underlying complaint, predated the insured's statements regarding the condition of the property. 

   Finally, allegations of emotional distress did not constitute "bodily injury" as defined in the Allstate policy. The underlying claims did not include any sort of bodily injury, physical harm, sickness or disease.