INSURANCE LAW – District Court held no coverage for cracking basement walls where damage not “sudden”:

1/10/2018 | Matthew J. O'Keefe
mjokeefe@jacksonokeefe.com

Category: Insurance

Matthew J. O'Keefe

The plaintiffs found cracks in the basement walls of their home, allegedly caused by faulty concrete and failed a claim with the defendant for coverage, claiming that the structural integrity of the walls was substantially impaired and that the walls would fail in the future.  Allstate  denied the claim and the plaintiffs sued for breach of contract, breach of implied covenant of good faith and fair dealing and deceptive and unfair practices in violation of CUIPA and CUTPA.  The Court, in granting the defendant’s motion for summary judgment as to all claims, found that the policy only covered “sudden and accidental direct physical loss to property” not gradual deterioration over time.  Lees v. Allstate Insurance Co., 2017 WL 5906612 (D. Conn. 11/30/17)

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