Exclusion Trumps Efficient Proximate Cause Argument

DENVER - An exclusion for all losses caused by 'water below the surface' applies to leaks from an underground water delivery pipe even though a homeowners' policy would otherwise provide coverage for plumbing leaks, Colorado's Court of Appeals held March 8. Thompson v. State Farm Fire & Casualty Co., No. 05CA2079 (Color. Ct. App.).

The court agreed with State Farm Fire & Casualty Co. that there was no ambiguity in the all risks homeowners policy and that the plain language of the policy excluded coverage for personal and property damage claimed by Keith and Mary Thompson.

The Thompsons sued State …