John Ercolani and Elaine Ercolani, in 86-5613 v. Excelsior Insurance Company, in 86-5629

OPINION OF THE COURT

GIBBONS, Chief Judge:

In this diversity declaratory judgment suit by a policy owner against the issuer of a named peril homeowners’ insurance policy, the policyholders, John and Elaine Ercolani, appeal from a judgment in favor of the issuer, Excelsior Insurance Company. The judgment was entered after a bench trial in which the trial court found that the physical loss for which the Ercolanis sought recovery was “a collapse of a building or any part of a building” within a named peril in the policy, but was excluded by the policy’s water damage exclusion. We conclude that the…