Exclusions in the plaintiffs' policy barred coverage for loss caused by heavy rain storms. Emsbo v. Fireman's Fund Ins. Co., 2013 U.S. Dist. LEXIS 86072 (D. R.I. June 19, 2013).
Torrential rain and historic flooding was experienced in Rhode Island in March 2010. The heavy rains over-flowed plaintiffs' rain gutters and flooded the ground around the house. The water then came through a crack in the foundation, moving water and sand into the basement. Repairs were made, but another heavy rain arrived a week later, again bringing water and sand into the basement. After the rains subsided, the plaintiffs noticed mildew in the basement.
Plaintiffs submitted a claim to Fireman's Fund. The claim was denied under the policy's exclusions for water damage and fungi. Litigation ensued.
The court agreed that the loss was excluded by the policy. Plaintiffs argued that the policy covered damage from a sudden rainstrom. The Fireman's Fund policy, however, excluded coverage for water damage caused by water below the surface of the ground, which seeped or leaked through the foundation. "Dampness" was also excluded unless the damage was the direct cause of the loss was rain. This exception to the exclusion was not applicable because the water damage was caused not by rain, but by the by water seeping through the foundation into the basement.
Fungi was only covered if it was the result of a cause of loss otherwise covered by the policy. The mold here, however, was caused by the seeping water and therefore not a loss otherwise covered by the policy.
