Water Damage Not Covered Under Insurance Policy.

Plaintiff noticed condensation and mold around the windows of his home. Upon inspection, a plumber discovered a slow water leak which pooled under the home. Plaintiff had purchased a “Farmers Next Generation Homeowners Policy” which had limited water damage coverage. The policy described what was not included in the limited water damage coverage:  “. . . We do not cover any water, or the presence of water, over a period of time from any constant or repeating gradual, intermittent or slow discharge, seepage, leakage, trickle, collecting infiltration, or overflow of water from any source . . . whether known or unknown to any insured.” For mold, the policy stated: “We do not insure loss or damage consisting of, composed of, or which is fungi. Further, we do not insure any remediation.” The trial court granted summary judgment to the insurer in plaintiff’s action for breach of contract and breach of the implied covenant of good faith and fair dealing. The appellate court affirmed, noting the policy was not ambiguous when it referred to water damage and a leak “over a period of time.” Brown v. Mid-Century Insurance Company  (Cal. App. Second Dist., Div. 1; April 2, 2013) (As Mod. April 24, 2013) 215 Cal.App.4th 841.