‘Dodge v. People’s Trust Insurance’ and Its Effect on Coverage of Cast Iron Pipes Claims | Daily Business Review

On June 2, the Fourth District Court of Appeal rendered a decision in Dodge v. People’s Trust Insurance, 46 Fla. L. Weekly D1286 (Fla. 4th DCA June 2, 2021) concerning coverage related to the failure of cast iron pipes in a breach of contract action. This case came to the court on appeal of the circuit court’s summary judgment order limiting People’s Trust Insurance (People’s Trust) liability for water damage to $10,000 under the parties’ homeowner’s insurance policy. Specifically, the appellant challenged the circuit court’s decision to limit damages capped by the policy to $10,000 per occurrence.
This case involved a first-party breach of insurance contract claim where the insureds, Gene and Kathleen Dodge, sought to recover contractual damages under their People’s Trust homeowner’s policy for water damage caused by overflow of water from the plumbing system. The parties agreed that the Dodges’ loss resulted from the deterioration of cast iron pipes under the home because of “rust or other corrosion.” People’s Trust accepted coverage for the loss in the amount of the $10,000 policy limit. The trial court granted People’s Trust’s motion for summary judgment regarding the breach of contract claim for claimed damages above the policy limits.

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