The Mississippi Supreme Court affirmed the granting of summary judgment to the insurer that there was no coverage under the all risk policy for loss caused by wind and water. Porter v. Grand Casino of Miss., Inc., 2016 Miss. LEXIS 3 (Miss. Jan. 7, 2016).
Cherri Porter's home was destroyed during Hurricane Katrina. The destruction occurred when the barge operated by Grand Casino of Mississippi came loose from its moorings and collided with her home.
Ms. Porter submitted a claim to her insurer, State Farm. The policy excluded loss caused by wind or water damage. Also excluded was "loss that would not have occurred in the absence of an excluded event." Because any loss caused by the barge would not have occurred in the absence of an excluded event - i.e., the flood of storm surge that broke the barge from its moorings - State Farm denied coverage.
Porter sued State Farm for bad faith denial of her claim. In discovery, she admitted there was no other explanation for the barge's movement other than the forces of wind and water. Because the policy excluded loss caused by water, the trial court granted summary judgment to State Farm.
The Mississippi Supreme Court affirmed. State Farm excluded both loss caused by wind damage and loss caused by water damage. The policy unambiguously stated that any loss that would not have occurred absent water damage was not covered. The barge, by itself, would not have collided with Porter's home. The barge did not act independently to cause loss, but instead operated in conjunction with the storm surge to cause the damage.