While I wholeheartedly agree that fired rounds should never leave the range, from a legal liability perspective, "which came first" can matter very much. If the house was built after the range, the range and insurer could argue that the homeowner assumed the risk of stray bullets by building there with full knowlede of the range's existence.
Well which came first, the house or the bullets? As it is illegal in most states to fire across property lines without consent, that the range came first would not allow for justification of the house being shot. The range is liable because of conducting activities in an unsafe manner.
I would not be surprised if the insurer argued your point, but they obviously lost with the court case.
Watch almost any Bullseye pistol practice and you will see muzzle's elevated over the backstop.
Hell, i was watching the last episode of Top Shot Al-stars and most of the shooters in the elimination bracket elevated the volquartsen rifle, and Gunny Zinns elevated that rifle to a 10'clock Sun Shot!!
Is the military changing any of their disciplines to stop elevation of muzzles over back-stops???
Yep, and watch all the guys doing the semi-auto pistol reloads with the pistol (often) cant left by about 45 degrees and upwards at 45 degrees. It makes for an easier reload and they drop the slide before the pistol is lowered to pointing back within the bounds of the range. Any discharges during the period will result in rounds immediately leaving the range.
I have to laugh when instructors talk repeatedly about muzzle discipline and then regularly point their pistols over the berms during numerous activities and have their students follow with the same actions.