Like the typical cast iron pipe claim, the insureds had an overflow of water in the home stemming from deteriorated cast iron pipes, causing damage to the property. The insurer acknowledged coverage and only paid $10,000.00 under the LWD endorsement. The insureds claimed they were owed more for “tear out” and to replace the undamaged concrete slab which was necessary to access

 the pipes at issue.


The insurer argued that the $10,000.00 limit applied to both the water damage and the “tear out” cost and no

 more was owed. Conversely, the insureds asserted that the $10,000.00 limit only applied to the water damage, thereby leaving “tear out” costs to be covered as part of the 

  ensuing loss for water damage provision. 



The appellate court, reading the plain language of the policy, relied on the policy language stating “the limit of liability for all damage to covered property provided by this endorsement is $10,000.00 per loss,” in determining the “tear out” costs were not “damage” but that “tear out” costs are referenced as an item to be covered as part of a loss under the ensuing loss for water damage provision. Thus, the “tear out” would be considered as part of the limits for the dwelling damage. 

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