The appellants' outdoor in-ground swimming pool was damaged by hydrostatic uplift pressure.
Their property insurance policy contained a common exclusion for settling, expansion, contraction, moving, bulging, buckling or cracking, as well as an exclusion for outdoor swimming pools.
The appellants had purchased an endorsement specifically covering their outdoor swimming pool, which stated that all other terms, conditions, and exclusions remained unchanged.
The application judge held that the common exclusion applied, denying coverage.
On appeal, the Court of Appeal held that applying the common exclusion to the endorsement would render the coverage for the most obvious risks nugatory, virtually nullifying the coverage.
The appeal was allowed, and a declaration of coverage was granted.
