On June 29, 2022, Florida's Fourth District Court of Appeal issued a favorable decision for insurers, but on its face, the decision may seem to conflict with Fifth District law.

In Herrington v. Certain Underwriters at Lloyd's London (Florida Fourth DCA June 29, 2022), the court reviewed an order granting summary judgment to an insurer. The policyholder's home suffered damage caused by a water pipe leak, and while the insurer acknowledged coverage, it only paid the maximum under the policy's "water damage aggregate limitation" endorsement: $5,000. The policyholder claimed that the endorsement did not limit "tear-out" expenses, and thus the expenses related to tearing out and accessing the damaged plumbing should not be subject to the $5,000 cap.

The Fourth District disagreed, finding that the endorsement covered all such loss arising out of water damage, including tear-out and access damage. The court relied on the plain language of the endorsement and recognized that to the extent an endorsement is inconsistent with the policy, the endorsement controls. Notably, the endorsement stated, "It is hereby understood and agreed that for such insurance as is afforded by this policy, loss(es) paid for damage arising out of water shall be subject to a maximum amount of $5,000 during the policy term."