Homeowners Insurance : Is The Ground Insured Property?

On October 29, 2009, the Honorable Justice Micheline Sasseville of the Court of Quebec, in the case Valade c. Capitale (La), assurances générales inc., ordered an insurer to reimburse its insured for the cost of decontaminating the ground under the insured's home pursuant to a homeowner's insurance policy. The contamination had been caused by a leak in the insured's heating oil tank located in the basement.

This judgment sheds some light on a question that arises more and more frequently in relation to homeowners insurance: to what extent, and in what circumstances, is the soil on which the residence rests insured property under the policy?

The facts are as follows. Between October 20 and October 22, 2006 an accidental fuel leak occurred in the insured's basement. The damages were limited to the basement. Immediately upon receiving notice of the loss, the insurer dispatched a decontamination team on site. Cylindrical containment sponges were installed to minimize