Home Insurance and the Pollution Exclusion

A BC court has upheld the pollution exclusion in a home insurance policy.

The issue was the scope of the "pollution exclusion" clause in a policy of home insurance issued by the defendant, BCAA Insurance Corporation, to the plaintiff, Brian Corbould. Corbould sought a declaration of coverage for property damage that occurred when an above-ground storage tank for home-heating fuel oil leaked into the soil around his cottage."The policy stated:

• The "all risks" property coverage in the comprehensive insurance policy that BCAA issued to Mr. Corbould provides, in the section of the policy dealing with property coverage, at Section 1.7:

Perils Insured

You are insured against ALL RISKS OF DIRECT PHYSICAL LOSS OR DAMAGE subject to the exclusions and conditions in this policy.