Water Damage, Rot Exclusions Don't Preclude Coverage In Tenn. EIFS Case

KNOXVILLE, Tenn. - An exclusion for 'wet rot' doesn't preclude coverage for water damage to a house resulting from water intrusion behind synthetic stucco siding, a Tennessee appellate court concluded on March 24. Phillips v. USAA, No. E2003-00850-COA-R3-CV (Tenn. App. Ct., Knoxville).

United Services Automobile Association appealed a judgment by the Knox County (Tenn.) Chancery Court, which found for Charles C. Phillips Jr. on that issue and conditionally certified a class of plaintiffs whose similar claims have been denied by USAA.

USAA appealed from the judgment for Phillips. Phillips didn't seek coverage for repairs to the Exterior Insulation and Finish …