The insured has an HO3 and during Storm Ida has a pipe rupture under the house that caused water to back up into the basement; the sump pump failed causing water damage to the finished basement. In addition, the accumulation of water under the house caused a sinkhole and the foundation shifted making the house unlivable. Hanover has denied coverage for the loss but they did pay for the repair of the pipe that ruptured under Service Line coverage. The company has determined that flooding was the proximate cause of the damage diverting water and putting pressure on the sewer line, listing flood as the exclusion. We don't think the claim should be denied based on flooding. FEMA defines flood as affecting 2 acres or 2 or more homes. While 7″ of rain put pressure on the pipe, had the pipe not burst, there would have been no claim.

New York Subscriber

The problem with the FEMA definition of flood is just that; it's the FEMA definition of flood, and not the definition of flood in the HO 00 03. When a term is not defined in a policy courts turn to a standard desk reference dictionary since that is what the general public has access to. While we in the insurance industry are well familiar with the NFIP definition of flood, consumers aren't. Merriam Webster online defines flood as: a rising and overflowing of a body of water especially onto normally dry land, also: a condition of overflowing or an overwhelming quantity or volume. Whether what affected the insured at the time of loss meets these definitions is something I can't determine.