Our insured's building suffered water damage from a broken underground water pipe. The damaged pipe led from the water main in the street to the insured's building. Naturally, the broken pipe had to be dug up to be repaired in order to avoid the continuation of the water damage to the building. The insurance company is willing to pay for the water damage to the building, but it refuses to pay the cost of digging up the water pipe to repair it, citing building and personal property form CP 00 10 04 02. Under “Property not Covered,” the form says that covered property does not include the cost of excavations, grading, backfilling, or filling. The insurer is using this portion of the policy to say that the cost of excavating the pipe to repair it is not covered.

What do you think?

Ohio Subscriber