Tento International, Inc. v. State Farm Fire & Casualty Co.

Tentó International, Inc. (“Tentó”) appeals the district court’s dismissal of its claims against State Farm Fire and Casualty Company (“State Farm”). A third-party contractor making repairs to the roof of Tento’s rented business premises neglected to place a temporary covering over an open space in the roof, allowing rain to damage Tento’s electronics equipment. State Farm denied coverage under its insurance policy.

We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we reverse.

FACTUAL BACKGROUND

Tento’s landlord hired a roofing contractor to make repairs to the roof covering Tento’s electronics equipment business. The contractor removed a portion of the roof but failed to install a temporary covering. Almost predictably, rain fell and damaged Tento’s electronics equipment.

Tento’s insurance policy with State Farm covered accidental direct physical loss unless it was either “limited in the PROPERTY SUBJECT TO LIMITATIONS section” or “excluded in the LOSSES NOT INSURED section.” The policy limited its coverage for rain-damaged goods in the PROPERTY SUBJECT TO LIMITATIONS section, stating:

In the LOSSES NOT INSURED section, later on in the policy, the policy excluded a…