I support their refusal to pay in this case. Its impossible for a policy to cover events that happened in the past. A policy covers an individual against specific events that may occur for a fixed duration based on how much they pay. The house was already damaged, likely decades ago. The house was inspected by a licensed home inspector before sale. Due diligence was attempted. Insurance isn't a product that allows you to buy damaged goods and have them repaired. It allows you to preserve the utility and value of existing goods.