Although the insurer failed to understand the pertinent law that mandated coverage under the policy, its actions did not rise to an unfair claim settlement practice justifying multiple damages. Gelwan v. Vermont Mut. Ins. Co., 2013 U.S. app. LEXIS 210 (2nd Cir. Jan. 4, 2013).

In 1999, a contractor re-roofed the insureds' home. The job was poorly done, and an imperfect seal was created. Over several years, various structures within the house were damaged by water, which caused the rotting of structural beams and joists.

The insureds sued for coverage under their homeowners policy.