No Coverage for Plumbing Leak Under Home's Concrete Slab

PHILADELPHIA - Homeowners failed to persuade a federal judge that language excluding coverage for damage from any underground water was ambiguous and shouldn't apply to basement damage from a leaking sewer pipe under the home's concrete slab. Colella v. State Farm Fire & Casualty Co., No. 09-cv-2221 (E.D. Pa.).

Judge J. Curtis Joyner on March 30 granted State Farm Fire & Casualty Co.'s motion for summary judgment on contract and bad faith claims brought after State Farm cited the groundwater exclusion in denying a claim by policyholders Andre and Christina Colella.

The Colellas sought coverage for damage to carpets …