STORY FROM: Superstorm Sandy Insurance Litigation

Vacancy Endorsement Only Applies to Fire Losses, La. Federal Judge Rules in Water Damage Case

NEW ORLEANS — A standard fire policy endorsement requiring a policyholder to inform her insurer that her property was vacant for more than 60 days only applies to fire losses, a Louisiana federal judge has ruled in denying Allstate Insurance Co.’s motion for summary judgment in a water leak damage action.

On Dec. 28, Judge Susie Morgan of the U.S. District Court for the Eastern District of Louisiana also denied the insurer summary judgment on the issue of whether coverage is barred by the policy’s water leak exclusion, which bars coverage for damage caused by continuous seepage or leakage over ...

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