Glaviano

MEMORANDUM ***

Joseph and Jodeanna Glaviano (the “Glavianos”) appeal the district court’s grant of summary judgment to Allstate Insurance Company (“Allstate") dismissing their breach of contract and breach of the implied covenant of good faith and fair dealing claims. The Glavianos argue that the district court incorrectly interpreted their insurance policy’s “dry rot,” “water,” “soil conditions” and “collapse” exclusions to deny them coverage for damage to their home caused by the fungus Meruliporia incrassata (“Poria”). We agree with district court that the “dry rot” provision generally excludes coverage for Poria damage, but we reverse its holdings that the “dry rot,” “collapse,” “water” and “soil conditions” exclusions operate as a matter *495 of law to exclude coverage for a collapse caused by hidden decay due to Poria damage. We remand because there is a genuine issue of material fact as to whether the Glavianos’ loss was a “sudden and accidental” “collapse” caused by “hidden decay” under the policy’s exception to its collapse exclusion. Finally, we affirm the dismissal of the Glavianos’ “bad faith” denial of coverage claim.

We review a grant of summary judgment de novo.…