This was an appeal from a judgment in favor of an insurance company to the effect that water damage to imported merchandise, received and stored in the insured's warehouse prior to the effective date of an open cargo policy, was not covered. The insured, an importer of women's apparel, purchased the basic policy to cover its imports, effective on and after May 16, 1985, while at port or at sea. A warehouse coverage endorsement was added:

". . . .to cover goods and merchandise which have been insured by this policy for the import voyage. . . .while temporarily detained in stores or warehouses. . . .within the United States." It was stated in the endorsement that its provisions applied to the described goods and merchandise on or after May 16, 1985.

The insurer argued that goods shipped prior to May 16, 1985 were not covered by the terms of the warehouse coverage endorsement. (The insured had received and stored the goods prior to the specified date; they were damaged while in storage somewhat less than three months after the date.)

The appeal court found it clear that the warehouse endorsement applied only to property covered during an import voyage on or after May 16, 1985. The damage property had been shipped prior to that effective date of the insurance. The goods in question were not covered by the policy during the import voyage; the endorsement did not extend its coverage to property not insured during the import process.

The judgment of the trial court was affirmed in favor of the insurance company and against the insured.

(PALI FASHIONS, INC., Plaintiff, Appellant v. NEW HAMPSHIRE INS. CO. ET AL., Defendants, Respondents. New York Supreme Court, Appellate Division, First Department. February 15, 1990. 551 N.Y.S. 2d 215. CCH 1990 Fire and Casualty Cases, Paragraph 2540.)