Water Damage Covered due to Insured's Mistake?

A customer of an insured car dealership received a recall notice from the manufacturer and took the notice to the dealership. A mechanic at the dealership told the customer that his vehicle was not included in the recall. Subsequently, heavy rains caused the car to take on water. The customer made a claim for water damage because the recall repairs theoretically would have corrected the problem and prevented the damage. The dealer's insurer has denied the claim. Should the loss be covered? If not, where could we go to find coverage for a situation like this?

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