The Washington Supreme Court, affirming an appellate court's decision, has ruled that the term "vacant" in a "Change in Condition Endorsement" was unambiguous and that the endorsement excluded coverage for water damage immediately upon vacancy.
Kut Suen Lui and May Far Lui owned a building containing tenant space in Washington. The building's last tenant moved out in the first week of December 2010. Around Jan. 1, 2011, less than 60 days later, a frozen sprinkler pipe broke in the building and caused substantial water damage.
Upon discovering the damage, the Luis notified their insurance provider, Essex Insurance Company, and filed a claim. Essex began investigating the claim and paid the Luis a total of $293,598.05 for property damage during the course of its investigation.
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