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INSURANCE COVERAGE: Superior Court holds no coverage for deterioration or risk of collapse

INSURANCE COVERAGE: Superior Court Holds No Coverage For Deterioration Or Risk Of Collapse

An engineer found that decaying concrete in the basement walls of plaintiffs’ home posed a risk of catastrophic failure and recommended plaintiffs vacate the house until the walls were replaced, plaintiffs brought a claim against their homeowners’ policy.

Plaintiffs never replaced the walls and continued to live in the home.  The defendant insurer denied the claim and plaintiffs brought suit.  The insurer moved for summary judgment, claiming that its policy did not provide coverage for visible deterioration, for collapse caused by known and visible deterioration, or for mere risk of collapse when building remained standing.

The Court, in granting the defendant’s motion for summary judgment, found that plaintiffs failed to establish any basis for coverage under the policy.  The policy language was unambiguous.  There was no evidence to support their contention of a “potential claim.”

Perracchio v. Homesite Insurance Company, No. CV 16-6010324 (03/06/2018)