Seepage, meaning a gradual, continuous, or repeated seepage or leakage of water, steam or fuel over a period of 14 days or more, resulting in damage to the structure, whether hidden or not. This endorsement takes precedence over all other endorsements attached to your policy.

The carrier is also denying any mold damage, stating that it is the result of seepage for over fourteen days and not the covered freeze loss. Is this the proper application of the seepage exclusion? All of the damages stem from the same sudden and accidental cause of loss: broken pipes due to a freeze. Does that mean that if the insured discovered the damages thirteen days after the loss they would have had full coverage for all of the damages, but since they discovered it more than fourteen days after the loss, the carrier can now deny some of the damages based on seepage?

New Jersey Subscriber

The seepage exclusion exists so that insureds do not neglect their property until a problem becomes a BIG problem. Had someone been living in the home or even checking on it, the leak would likely have been found and the mold prevented. If the pipes did leak or seep continuously, then the exclusion stands. Yes, had the loss been discovered on day thirteen, the entire loss would have been covered. The line has to be drawn somewhere, and fourteen days is generally where it is drawn.