Hetrick v. Valley Mutual Insurance

HESS, J.,

On July 27, 1987, the plaintiffs’ home was heavily damaged by fire. In the course of the fire, the fuel oil tank ruptured spilling approximately 250 gallons of oil into the ground causing the pollution of ground water. The plaintiffs were insured with the defendant under a homeowners policy which covered the period from April 15, 1987, to April 15, 1990.

The defendant denied coverage based on a breach of the policy conditions. More specifically, the defendant alleged that the plaintiffs increased the risk, failed to mitigate the damages and intentionally set the fire. Thereafter, the…