Raccoons in the Attic

October 5, 2015

I have a client that has sustained raccoon damage to his home, including the soffit area. This is a seasonal home and so the insured is often not there. The insured has on several occasions hired a pest removal company and has removed raccoons and attempted to board up their access points. There is some damage to the drywall in one of the ceiling areas and also the smell of animal urine. The insurance carrier has cited the exclusion that “we do not insured loss: Caused by: Nesting, infestation, or discharge or release of waste products or secretions, by any animal.” They further cite a Merriman-Webster dictionary that says nesting as being “a place where an animal or insect lives and usually lays eggs or takes care of its young”. They go on to say that nesting is when an animal makes your home their home. To make their home, they have an entrance and egress to their home which is considered part of the nesting process. Therefore, the damage to your home caused by the nesting raccoons is not a covered loss under your insurance policy. 

Is the insurance company's interpretation correct or it there coverage? I have seen many articles and had many other insurers pay for damage by raccoons as they are not considered vermin, but have not previously seen the exclusion of nesting cited for raccoons. What are your thoughts?