The case was brought by Ashley Hernandez and Samson Dallas Shake, homeowners in Seaside, California, whose property was damaged on or about March 8, 2025, when a water supply line failed in and around their bathroom, rendering the home uninhabitable. State Farm denied the claim on March 31, 2025, citing the policy exclusion for water “below the surface of the ground.” According to the filing, the insurer reached that conclusion without ever inspecting the property or retaining a plumber, leak detection company, engineer, or contractor to investigate.
