We have an insured whose commercial building suffered a loss when water started filling up the elevator shaft. It was determined that the source of the water was a broken city water pipe on the street near our insured's building that caused the water to seep through the ground and fill up the shaft.

The carrier denied the loss based on the underground water exclusion. We asked them to reconsider based on the distinction of natural vs. artificial underground water, see Water Exclusion Clause.

The carrier is standing firm on their denial, now stating that the current policy language precludes coverage. The language they are relying on is this: “Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss.”