Insurer Liability for Sudden Pipe Burst vs. Water Damage Exclusion

A claim was brought by a contract holder against an insurer for indemnity following damage to property, where the policy included a standard clause excluding liability for damage caused by seepage or infiltration of water, provided this was not due to a sudden and unforeseen event. The lower court had granted the claim, finding that the water damage resulted from a sudden and unforeseen burst in a water pipe concealed within a wall. The high court rejected the appeal, confirming that the lower court was correct in interpreting the exclusion clause as only applying to slow, gradual infiltration or seepage, and not to the rapid and unexpected event of a burst pipe, thus upholding the insurer's liability under the policy.