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State Farm wins “rain damage” suit

Posted by wlpo on March 21, 2015

In a split decision, the Iowa Supreme Court has ruled that an insurance company is not on the hook for a 2010 leak at Waterloo shopping center that damaged a store. The Waterloo-Cedar Falls Courier says the high court on Friday sided with State Farm Insurance in a lawsuit filed by a customer, Amish Connection Inc.

Court records say a metal drainpipe burst during a summer storm, sending water into Amish Connection’s shop, damaging inventory and business records.  State Farm refused to cover the claim, saying its policy didn’t cover rain damage. The Iowa Court of Appeals sided with the store last year, but on Friday, the majority of the Iowa Supreme Court said that rainwater, even if from a broken pipe, is exempt.

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