United States District Court, D. Connecticut
RULING ON DEFENDANT'S MOTION TO DISMISS
Bond Arterton, U.S.D.J.
Sandra Miller ("Plaintiff or "Ms. Miller")
brought this lawsuit alleging breach of an insurance contract
(Count 1), breach of the implied covenant of good faith and
fair dealing (Count 2), and violations of the Connecticut
Unfair Trade Practices Act ("CUTPA") and the
Connecticut Unfair Insurance Practices Act
("CUIPA") (Count 3) against Defendant Allstate
Insurance Company ("Defendant" or
"Allstate") in connection with Allstate's
denial of coverage for a claim to cover the cost of repairing
a crumbling house foundation. Defendant moves [Doc. #16] to
dismiss all Counts. For the reasons set forth below,
Defendant's Motion is GRANTED.
alleges that she insured her home through a homeowner's
insurance policy issued by Allstate and that she timely made
all required premium payments. (Compl. [Doc. # 1]
¶¶ 3-4.) "Over time" Ms. Miller noticed
"visible cracking patterns" in her basement walls.
(Id. ¶ 5.) Becoming worried that her home had
the same problems with its concrete foundation that she had
seen reported in the news, Ms. Miller engaged a structural
engineer to investigate the cracks in mid-November, 2015.
(Id. ¶ 6.) The engineer determined that the
concrete in Plaintiffs basement walls was cracking due to a
chemical reaction and that "this chemical reaction will
continue to progressively deteriorate the walls, rendering
the[m] structurally unstable----" (Id. ¶
November 26, 2015, after receiving the engineer's report,
Plaintiff made a formal claim with Allstate seeking coverage
under her homeowner's insurance policy for the cost of
"damages caused by the chemical reaction." (Id.
¶ 8.) The engineer subsequently "ordered that
the Plaintiff vacate her home due to the structural damage
caused by the concrete." (Id. ¶ 10.)
Plaintiff and her family vacated the house and continue to
incur charges to live away from their home. On September 30,
2016 Allstate denied coverage for Ms. Miller's claim.
insurance policy at issue is a Deluxe Homeowners Policy
issued by Allstate. (See Ex. C ("Policy")
to Mem. Supp. Mot. to Dismiss [Doc. # 16-4].) The Policy
provides the following general coverage:
We will cover sudden and accidental direct physical loss to
property described in Coverage A-Dwelling Protection and
Coverage B-Other Structures Protection except as limited or
excluded in this policy.
(Policy at 37.) The Policy then lists a series of
exclusions, several of which are relevant to the instant
dispute. The Policy does not cover losses "consisting of
or caused by... Collapse, except as specifically provided in
Section I-Additional Protection under item 11,
'Collapse'." (Id. at 38.) Further, the
policy does not cover losses "consisting of or caused by
. . . wear and tear, aging, marring, scratching,
deterioration, inherent vice, or latent defect;"
"rust or other corrosion, mold, wet or dry rot;" or
"settling, cracking, shrinking, bulging or expansion of
pavements, patios, foundations, walls, floors, roofs or
the policy generally excludes collapse, it specifies a set of
conditions under which collapse would be covered in the
"Additional Protection" section:
a) the entire collapse of a covered building structure
b) the entire collapse of part of a covered building
c) direct physical loss to covered property caused by (a) or