January 19, 2021

Norma Terrigno
716 Center Street
Ridgefield, NJ 07657

RE: Policyholder: Norma Terrigno

Policy Number: NJH0029478
Claim Number: N44770
Date of Loss: January 12, 2021
Loss Location: 716 Center Street, Ridgefield, NJ 07657

Dear Norma Terrigno:

It is our duty to investigate every claim which is reported to us and to make payment for those losses
which are covered under your HO-3 policy and Service Line Coverage (NBICHOSL1019) We have
conducted a review of your policy, and have, unfortunately, found that coverage does not apply under
your policy. This line is not considered a “covered service line”, and we cannot afford coverage to you
under this endorsement.

About two years ago you noticed a small crack in your yard that eventually became bigger. It was later
discovered that there was a pipe belonging to your next-door neighbor, which is underneath your
driveway, which had two leaks. The leaks caused another neighbor’s basement to become flooded. In
order for the next-door neighbor insurance company to repair the leaks they would have to gain access
through your driveway. Once the work was completed, they patched your driveway. You had your own
contractor out who stated that it was not done properly, and they would need to resurface your entire
driveway.

There are primary and secondary reason for this disclaimer of coverage. Under your Homeowners
policy, poor workmanship is not a covered peril. You may be able to make a claim against the
company which repaired your driveway.

Under your Service Line endorsement, the subject service line must belong to you, and in this case the
line belongs to your neighbor. Below are citations representing the basis for our disclaimer of
coverage.

Your policy, written under the Homeowners Special Form HO 00 03 10 00 states in part:

Section I – Perils Insured Against

A. Coverage A – Dwelling and Coverage B – Other Structures

__________________________________________________
PO Box 820 | Pawtucket, Rhode Island 02862
t 401.725.5600 | f 401.721.0700 | www.nbic.com
 1. We insure against risk of direct physical loss to property described in Coverages A
and B.

2. We do not insure, however, for loss:

c. Caused by:

6) Any of the following:

(a) Wear and tear, marring, deterioration;

(b) Mechanical breakdown, latent defect, inherent vice, or any

quality in property that causes it to damage or destroy itself;

(f) Settling, shrinking, bulging or expansion, including resultant

cracking, of bulkheads, pavements, patios, footings, foundations,
walls, floors, roofs or ceilings;

Section I – Exclusions

A. We do not insure for loss caused directly or indirectly by any of the following. Such loss is
excluded regardless of any other cause or event contributing concurrently or in any sequence to
the loss. These exclusions apply whether or not the loss event results in widespread damage or
affects a substantial area.

2. Earth Movement

Earth Movement means:

a. Earthquake, including land shock waves or tremors before, during or after a

volcanic eruption;

b. Landslide, mudslide or mudflow;

c. Subsidence or sinkhole; or

d. Any other earth movement including earth sinking, rising or shifting;

caused by or resulting from human or animal forces or any act of nature unless direct
loss by fire or explosion ensues and then we will pay only for the ensuing loss.

__________________________________________________
PO Box 820 | Pawtucket, Rhode Island 02862
t 401.725.5600 | f 401.721.0700 | www.nbic.com
 3. Water Damage

Water Damage means:

c. Water or water-borne material below the surface of the ground, including water which
exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation,
swimming pool or other structure;

B. We do not insure for loss to property described in Coverages A and B caused by any of the
following. However, any ensuing loss to property described in Coverages A and B not precluded
by any other provision in this policy is covered.

1. Weather conditions. However, this exclusion only applies if weather conditions

contribute in any way with a cause or event excluded in A. above to produce the loss.

2. Acts or decisions, including the failure to act or decide, of any person, group,
organization or governmental body.

3. Faulty, inadequate or defective:

a. Planning, zoning, development, surveying, siting;

b. Design, specifications, workmanship, repair, construction, renovation,

remodeling, grading, compaction;

c. Materials used in repair, construction, renovation or remodeling; or

d. Maintenance;

of part or all of any property whether on or off the "residence premises".

Please refer to the Service Line Coverage endorsement form NBICHOSL1019 as it states:

DEFINTIONS
The following definitions are added:

The “Service Line Covered Property” must be:

(1) Located on the “residence premises”, and
(2) Owned by you or you must be legally liable for this repair or replacement.

…
c. “Covered service line” does not include:
(2) That part of piping or wiring that runs through or under the dwelling or other structure.

__________________________________________________
PO Box 820 | Pawtucket, Rhode Island 02862
t 401.725.5600 | f 401.721.0700 | www.nbic.com
Based upon this information we are discontinuing the handling of this claim and will be unable to issue
any payments to or on behalf of you. If you have any questions regarding this matter, I can be reached
at the phone number below.

Sincerely,

Inez DeCausey
Claims Examiner
401-495-0764
idecausey@nbic.com

New Jersey

Appeals
New Jersey regulation provides claimants with the right to appeal “disputed” insurance claims when the
final offered claim settlement remains unacceptable. This procedure applies to all claims, except
claims for automobile personal injury benefits. Internal appeals must be sent by mail or fax to:
Narragansett Bay Insurance Company, P.O. Box 820 Pawtucket, RI 02862-0820 Attn: Internal Appeals
Coordinator OR Fax No. (401)721-0700. Your request for Internal Appeal must include a summary of
your claim, as well as all the reasons you believe the final settlement amount is unacceptable. You
must also include all supporting documentation you would like the Internal Appeal panel to review prior
to rendering their decision. Further consideration of this case should not be construed as an extension
or change to any statutory or contractual requirements that suit be filed within a specified time.

Fraud
Any person who knowingly and with the intent to defraud any insurance company submits an
application or statement of claim containing any materially false information, or conceals, for the
purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance
act, which is a crime.

__________________________________________________
PO Box 820 | Pawtucket, Rhode Island 02862
t 401.725.5600 | f 401.721.0700 | www.nbic.com