The BC Court of Appeal delivered yet another reminder to
insurers that, when interpreting policy wording, the policy must be
read as a whole and the analysis must not be reduced to specific
words viewed in isolation. Failing to do so may result in arriving
at an incorrect coverage determination, as was recently seen in
Gill v The Wawanesa Mutual Insurance Company, 2023 BCCA 97
[Gill], where the Court of Appeal found a
water back-up on a partially enclosed sun deck was "within
[the] dwelling" and found coverage for the
insured.
Background
In Gill, the homeowners claimed coverage under their
all-risks policy (the "Policy") after
water backed up and escaped from a drain located on the sun deck of
their property, causing damage. The Policy excluded coverage for
loss or damage caused by water or sewage backup, but contained a
Sewer Backup Endorsement (the
"Endorsement") for damage caused by a
sewer backup "within [the] dwelling", as follows:
