WASHINGTON SUPREME COURT UNANIMOUSLY FINDS NO COVERAGE FOR WATER DAMAGE IN VACANT BUILDING UNDER ENDORSEMENT IN COMMERCIAL PROPERTY POLICY

On June 9, 2016, the Washington State Supreme Court unanimously found that a commercial property insurer need not provide coverage for water damage in a vacant building when the policy specifically excluded coverage for such damage per endorsement. In Lui v. Essex Ins. Co., 2016 WL 3320769, the insured owned a building that was damaged by a pipe burst, which occurred on or about January 1, 2011. The building was vacant at the time, as the previous tenant had been evicted on or about December 7, 2010. An endorsement to the building owner’s policy stated:

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