No Coverage For 20-Year 'Progressive Loss,' Calif. Court Says

SAN FRANCISCO - California's manifestation rule precludes homeowners from obtaining coverage for undiscovered water and mold intrusion from the insurer at the time siding was installed, a federal judge ruled on April 29. Sapiro v. Encompass Insurance, et al., No. C-03-4587 MHP (N.D. Calif.).

Judge Marilyn Hall Patel of the U.S. District Court for the Northern District of California granted summary judgment to Encompass Insurance, whose predecessor insured the home when the siding was installed in 1980. But Judge Patel also dismissed Safeco Insurance Co., the insurer at the time the damage was discovered, because of policy exclusions.

Jerome …