Federal Judge Finds Water Exclusion Bars Insured’s Damage From Failed Pipe

Mealey's (February 22, 2016, 1:19 PM EST) -- HOUSTON — A commercial property insurance policy’s water exclusion endorsement precludes coverage for water damage from a failed pipe that does not qualify as personal property, a Texas federal judge ruled Feb. 19, granting summary judgment to an insurer on breach of contract and bad faith claims (Praetorian Insurance Co. v. Arabia Shrine Center Houston, No. 14-3281, S.D. Texas; 2016 U.S. Dist. LEXIS 20186).

(Memorandum and order available. Document #69-160304-018Z.)

On March 20, 2014, employees of Arabia Shrine Center Houston observed a large volume of water...
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