Fire Insurance Exchange issued a homeowners policy to Plaintiffs Syd and Vivian Rahe (the “Rahe’s”), covering their home in Manhattan Beach, CA. In 2014, the Rahe’s hired a company to power wash the exterior of their home. After the Rahe’s noticed leaks in their home, they retained a roofer, who discovered several of the roof’s natural slate tiles were broken. The Rahe’s tendered an insurance claim to Fire, stating the power washing company damaged the roof tile. After completing an inspection, Fire denied the claim based on the policy’s faulty workmanship exclusion (otherwise known as the third party negligence exclusion). The Rahe’s sued Fire, alleging causes of action for breach of contract, bad faith, and unfair business practices arising from Fire’s denial of the claim. The Court granted Fire’s motion for summary judgment, finding that the undisputed material facts established the loss was caused by the faulty or inadequate workmanship of the power washing company, and was, therefore, excluded under the Policy.
January 24, 2017