Question
What is the name of your state? New York
I have ground water contamination as a result of corroded underground oil tank.
My insurance company is saying that under the liability section I would be theoretically covered by "property damage", defined as "physical injury to or destructionof tangible propert, incuding loss of use of this property". However, they interpret the cost of remediation work as "equitable releief such as restitution, injunctive relief or governmental fines or penalteis", not as "property damage". As a result they are telling me that I am not covered.
The term "equitable relief" is not used anywhere in the policy.
1. Can they play word games and deny coverage as described above?
2. Is there any literature or a forum where one can see if the digging, remediation work and related damage repairs (as a result of the contaminated ground water) are qualified as "property damage" vs. "equitable relief"?
Any help or pointer would be appreciated.
Answer
What is the name of your state? New York
I have ground water contamination as a result of corroded underground oil tank.
My insurance company is saying that under the liability section I would be theoretically covered by "property damage", defined as "physical injury to or destructionof tangible propert, incuding loss of use of this property". However, they interpret the cost of remediation work as "equitable releief such as restitution, injunctive relief or governmental fines or penalteis", not as "property damage". As a result they are telling me that I am not covered.
The term "equitable relief" is not used anywhere in the policy.
1. Can they play word games and deny coverage as described above?
Yes
2. Is there any literature or a forum where one can see if the digging, remediation work and related damage repairs (as a result of the contaminated ground water) are qualified as "property damage" vs. "equitable relief"?
Any help or pointer would be appreciated.
good question. Since this is a LEGAL site we don't do geology questions. But if you had taken your insurance policy to a local attorney for review you would have already had a valid answer.
Answer
1) Is the UST (Underground Storage Tank) on your property?
2) Is the content in the LUST (Leaking Underground Storage Tank) Heating oil #2, Residential or #4, #6 low sulfur "Bunker Oil" Industrial.
3) Check with the NYSDEC website for info:
If I get penalized, my apologies.
I was involved in a 20,000 LUST closure in 1998. BIG COIN. Lots of co-ordination w/Agencies, because it was Industrial. Thank goodness there was NO water contamination.
Get a reputable Firm to do the work. This is not for the avg homeowner.