Think about this hypothetical dialog:
Shopper: “Mr. Merlin, it was like Noah’s Ark in our lounge! We have been flooded out. Our home equipment, garments, beds, sofas – every thing become a soggy mess. And guess what? The insurance coverage firm is taking part in disguise and search with our cash.”
Chip: “That feels like a modern-day aquatic journey! However inform me, did you may have flood insurance coverage?”
Shopper: “Flood insurance coverage? We reside within the penthouse, 23 flooring up. The one waves we see are those on TV! Why would we purchase flood insurance coverage?”
Individuals typically name numerous types of water harm a “flood” when most insurance coverage professionals coping with insurance coverage consider a flood as rising waters on floor degree brought on by numerous components. Water at floor degree then brings to thoughts the time period “floor water.” “Floor water” might not rise to the extent of a “flood,” however is commonly of concern as a result of harm from floor water is commonly excluded in property insurance coverage insurance policies.
Understanding the excellence between these two phrases is crucial within the context of property insurance coverage. It helps in precisely assessing applicable protection for water-related damages. So, what’s “floor water,” and the way is it totally different than a “flood?”
These points and phrases are at situation in a case that’s being despatched to the Massachusetts Supreme Judicial Court docket with the next query posed by the federal appellate court docket:1
Whether or not rainwater that lands and accumulates on both (i) a constructing’s second-floor out of doors rooftop courtyard or (ii) a constructing’s parapet roof and that subsequently inundates the inside of the constructing unambiguously constitutes ‘floor waters’ beneath Massachusetts legislation for the needs of the insurance coverage insurance policies at situation on this case?
The unusual a part of this case is that “floor waters” are a part of the definition of a “flood” within the insurance policies at situation. Each insurance policies take into account “Flood” a “Coated Explanation for Loss.” The insurance policies outline flood as:
A common and non permanent situation of partial or full inundation of usually dry land areas or construction(s) brought on by: The bizarre and speedy accumulation or runoff of floor waters, waves, tides, tidal waves, tsunami, the discharge of water, the rising, overflowing or breaking of boundaries of nature or man-made our bodies of water; or the spray there from all whether or not pushed by wind or not[.]
On this uncommon case, the insurance coverage firms are arguing {that a} “flood” occurred on the roof as a result of a flood sublimit reduces the quantity payable.
A search of this weblog pointed to a related article, How Do You Outline “Floor Water” And Is It Coated Beneath My Coverage?:
In Union Avenue Furnishings and Carpet, Inc. v. Peerless Indemnity Insurance coverage Firm, Union’s property was severely broken by water when a considerable rainfall occurred within the space which triggered water to enter the property by way of the partitions, chimney and skylight. Many of the harm was brought on by water that flowed into the ability from the car parking zone by way of the loading dock.
Peerless argued the water harm to Union’s enterprise private property was not an insured loss as a result of the harm was brought on by a ‘flood’ or by ‘floor water.’ Peerless additionally argued that the water that got here by way of the roof that additionally broken the enterprise private property was ‘floor water’ and due to the anti-concurrent clause, the contents weren’t insured.
In rejecting Peerless’ interpretation of the time period ‘floor water,’ the court docket, citing instances and authority from different jurisdictions, indicated that water from precipitation (rain or snow) flowing on the bottom exterior of any outlined channel, however that water which accumulates on a roof from rain, doesn’t qualify.
…
The problem concerning the authorized definitions of ‘floor water’ and ‘flood’ range from jurisdiction to jurisdiction and are available in many sizes and shapes. In case your insurance coverage service denies your declare for ‘floor water’ or ‘flood,’ ensure you name one in all our attorneys to help you together with your declare.
My curiosity in “floor water” has formally reached new heights – or ought to I say depths? It’s just like the mysterious character in a detective novel that retains popping up the place you least anticipate it. I’ll be diving into this frequent water harm protection battle with the keenness of a child in a puddle. Count on splashes of perception and possibly even just a few ripples of laughter as we discover this subject over the subsequent week. Get your rain boots prepared as a result of we’re about to wade by way of some critically murky insurance coverage waters!
Thought For The Day
Canine are the leaders of the planet. In the event you see two life types, one in all them’s making a poop, the opposite one’s carrying it for him, who would you assume is in cost?
—Jerry Seinfeld
______________________________________
1 Zurich American Ins. Co. v. Medical Properties Belief, No. 23-1167 (1st Cir. Dec. 19, 2023).