Warner

I. Introduction

The Warners appeal from a judgment of dismissal after the trial court sustained the demurrer of Fire Insurance Exchange (the insurer) to their first amended complaint. The Warners seek recovery from an all-risk homeowner’s policy issued by the insurer to the Morrises (the insureds) from whom they bought a residence. The trial court ruled the policy did not cover the Warners’ claims for damages for negligent misrepresentations made by the insureds in the course of selling the property.

We affirm because there was no damage to tangible property during the time the policy was in effect.

II. The Facts

The insureds sold their residence to the Warners. In showing the property the insureds erroneously represented to the Warners the property included an area of about 35 feet by 150 feet. The deficiency was discovered about one year after the sale when the adjoining property owner fenced off the land in question. At the same time the Warners learned the patio attached to their house violated local setback restrictions. The Warners also lost their panoramic view, the ability to improve the property consistent with plans under consideration before the purchase…