Surabian Realty Co., Inc. v. NGM Ins. Co.

After a storm began, water stopped flowing down the parking lot drain on the property, which had become clogged with debris. Water seeped under the door of the building, flooding its lower level and damaging carpeting, baseboards, and walls. The owner had an "all risk" insurance policy, covering damage from any peril that was not specifically excluded. One of the exclusions was for water damage. After investigating, the insurer denied the claim, finding that the damage resulted at least in part from surface water, which was excluded by the policy. The owner alleged breach of contract, breach of the implied covenant of good faith and fair dealing, unfair or deceptive insurance practices in violation of G.L. c. 176D, and unfair or deceptive acts or practices in violation of G.L. c. 93A. The Superior Court granted the insurer summary judgment, finding that the damage was caused at least in part by "surface water." Although the damage was also partially caused by water that had backed up from a drain, the "anticoncurrent cause" provision of the policy excluded coverage for surface water "regardless of any other cause or event that contributes concurrently or in any sequence to the loss." The Massachusetts Supreme Court affirmed. View "Surabian Realty Co., Inc. v. NGM Ins. Co." on Justia Law