Water from Broken Pipe Moves through Soil before Causing Damage

 January 5, 2015

 The insured has a home insured under an HO 3. The house was damaged by water from a broken pipe under the slab. The carrier seems to acknowledge that generally the cost to tear out the slab to get to the broken pipe is covered if there is resulting damage, just not the cost of replacing the pipe. We agree. The facts in this case, however, are unique. One side of the house is built on a slab that sits at grade level. The other side of the house is over a basement. Apparently the pipe broke under the slab at grade level then the water seeped down through the soil and entered the basement through the basement walls, damaging the basement finishes. All of this took place directly under the home. There was no damage to the house in the area above the slab where the pipe broke. It is the carrier's position that since the water went through the soil and into the basement walls that they will not cover the cost to excavate to get at the pipe. I disagree. This was a failure of a plumbing system and there was resulting damage to the home. I believe the cost to tear out and put back the slab to get at the pipe should be covered along with all of the resulting damage from the water and the tear out just not the cost of the broken pipe itself.

Michigan Subscriber

The water came from the broken pipe, not the environment. It does not matter that it went through the ground first—had the pipe not broken the water would not have entered the basement. The broken pipe is the proximate cause of the loss. The loss is covered.