'Underground Water' Exclusion Applies to Damage from Supply Pipe



DOCUMENTS
  • Opinion


DENVER, Colo. - The Colorado Court of Appeals affirmed summary judgment for a home insurer on March 8, after concluding that an exclusion for "water below the surface of the ground" applies to damage from a leaking supply pipe. Thompson v. State Farm Fire & Casualty Co., No. 04CV8500 (Colo. Ct. App.).

The court rejected the argument by Keith and Mary Thompson that the exclusion in their homeowners policy from State Farm Fire & Casualty Co. applied to groundwater or other naturally occurring subterranean water source.

The Thompsons alleged breach of contract and bad faith by State Farm, which denied …






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