Article: Earth movement exclusion keeps on moving.(EXPOSURES AND COVERAGES)

In the October 20, 2008 edition of the Insurance Advocate I wrote about the evolution of the earth movement exclusion in property insurance policies. I pointed out that insurance companies interpret the latest ISO version of the exclusion to exclude losses resulting from excavation work on adjoining premises that destabilizes the foundation of the insured's building. The New York Court of Appeals (the highest court in the state of New York) has just weighed in on the issue when it decided Pioneer Tower Owners Association. v. State Farm Fire & Casualty. Co., 2009 NY Slip Op 03409 (Ct. App., April 30, 2009).

The court described the claim as follows: "Plaintiff ...

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