Landlord Covered for Damage Caused by Flooding

Facts: A sprinkler head froze and ruptured in the basement of landlord's building. This caused flooding and damage to mechanical and electrical equipment as well as some structural damage. Landlord's insurance company rejected landlord's claim because the damage was caused by ``extremes in temperature'' or ``freezing,'' both of which were excluded from coverage under landlord's builders risk insurance policy. Landlord sued the insurance company. The trial court ruled for landlord; the appeals court reversed. Landlord appealed again. Court: Landlord wins. The damage to the building was caused by flooding after the sprinkler head ruptured. And landlord's policy covered water damage. By interpreting the damage in this case as caused by freezing, the lower court went beyond the common meaning of what is considered harm caused by freezing temperatures.

[Album Realty Corp. v. American Home Assurance Co.: NYLJ, p. 25, col. 3 (12/1/92) (Ct. App. NY)].