Insurance company dodges water-damage claim

Are shared condominium walls covered under policy?

Alicia Palacin owns a condominium where she purchased a condo owner's insurance policy from Allstate Insurance Co. Her condo was severely damaged by water leaking from an adjoining condo. When she filed a claim for water damage to her condo with Allstate, the insurer refused to pay repair damages. Purchase Bob Bruss reports online. The insurer pointed to its condo policy, which says, "Property we cover under Coverage A: We will cover items of real property pertaining directly to your residence premises, which are your insurance responsibility as expressed or implied under the governing rules of the condominium. This includes fixtures, construction materials and supplies, installations or additions comprising a part of the residence premises, only when situated within that portion of the premises used exclusively by you and made or acquired at your expense." Palacin then sued Allstate, alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and fr...