Big Win For Homeowners Fighting The 14 Day Water Exclusion
By Ana Cristina Rossi, Esq.
In June, the Fifth District Court of Appeals handed down an opinion which amounted to a big win for homeowners all across the state of Florida. In the case of Whitely v. American Integrity Ins. Co. of Florida, the insured, Larry and Sherri Whitely, filed an appeal when their case against their homeowner’s insurance company was dismissed by the trial court.
The Whitely’s reported a claim to their insurance company, American Integrity, in November of 2012 after their property sustained damage as a result of a water event. American Integrity denied the claim based upon an expert report which determined that the property was exposed to water for a period of about 30 days.
In denying the claim, American Integrity relied upon an exclusionary provision in the policy which provided that the policy did not cover loss caused by “constant or repeated seepage or leakage of water over a period of 14 days or more from within a plumbing system”.
The Whitely’s brought a lawsuit for breach of contract as a result of American Integrity’s failure to pay for the damages sustained to their home. American Integrity filed a Motion for Summary Judgment and argued that they were entitled to judgment in their favor as a matter of law due to the alleged unambiguous policy exclusion regarding water exposure occurring over a period of more than 14 days.
The trial court agreed and granted the motion, effectively disposing of the Whitely’s case.
On appeal, the Fifth District Court of Appeals reversed the decision of the trial court. The appellate court found that once a loss occurs, it is the insured’s burden to show that a loss occurred within the terms of the policy. After that, the burden shifts to the insurance company to show that the loss is excluded under the policy.
Although the appellate court recognized that the insurance policy contained an exclusion for water exposure occurring over a period of more than 14 days, the court found that the insurance company failed to establish that the loss did not occur within the first 14 days. Therefore, the appellate court concluded that the insurance company was not entitled to judgment as a matter of law and the case was remanded to the trial court.
Ana Cristina Rossi, Esq.
Learn more about Ana Cristina here!
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