In Pioneer Tower Owners Assn. v. State Farm Fire & Cas. Co., 12 NY3d 302 (2009), the New York Court of Appeals found an "earth movement" exclusion was ambiguous when applied to an excavation. The court now considered whether a similar exclusion, expressly made applicable to "man made" movement of earth, eliminated the
First Party Insurance
Term “Resident Premises” In Homeowners’ Policy Found Ambiguous
By Tred R. Eyerly on
The meaning of "residence premises" in a first party policy was the issue in Dean v. Tower Ins. Co. of New York, 2012 N.Y. LEXIS 3088 (N.Y. Oct. 25, 2012).
The insureds purchased a home. Closing was scheduled to take place on May 20, 2005. The insureds purchased a homeowners' policy from Tower…
Late Notice of Loss Excused Where No Prejudice to Insured
By Tred R. Eyerly on
Four homeowners filed suit against Farmers after loss due to fire. Henderson v. Farmers Group, Inc., 2012 WL 5246912 (Cal. Ct App. Oct. 24, 2012). The issue was whether Farmers must provide coverage where late notice was given, but no prejudice was shown.
In August 2009, the Station Fire destroyed 89 homes in Southern California.
Arizona Does Not Recognize Efficient Proximate Cause Doctrine
By Tred R. Eyerly on
The federal district court determined the insureds' arguments relying upon the efficient proximate cause doctrine were misguided and only a portion of the loss from fire and earth movement was covered. Stankova v. Metro. Prop. & Cas Ins Co., 2012 U.S. Dist. LEXIS 150900 (D. Ariz. Oct. 18, 2012).
The insureds' garage was…
Late Notice Bars Claims for Hurricane Damage
By Tred R. Eyerly on
Thinking the loss to their property could not meet the deductible, the insureds failed to file timely notice, thereby barring their claim. Slominski v. Citizens Prop. Ins. Corp., 2012 Fla. App. LEXIS 16730 (Fla. Ct. App. Oct. 3, 2012).
After Hurricane Wilma hit Florida on October 24, 2005, the insureds made minimal…
Insurer’s Denial of Document Restoration Claim Improper
By Tred R. Eyerly on
The federal district court considered the applicability of a document retention clause in Amtex Bancshares v. Bancinsure, Inc., 2012 U.S. Dist. LEXIS 140557 (E.D. Tex Sept. 11, 2012).
Hurricane Ike caused severe damage to the insured's bank on September 13, 2008. The policy issued by Bancinsure, Inc. covered the property and its contents.
Exclusion Bars Coverage for Mold, Fungus
By Tred R. Eyerly on
The court considered whether rain damage to a house was barred by the policy's mold exclusion. Stewart v. State Farm Fire & Cas. Co., 2012 U.S. Dist LEXIS 127804 (D. S.D. Sept. 7, 2012).
The insureds hired DJ Construction to build a new home. Before construction was completed, it was discovered that DJ Construction…
Exception to Exclusion for Water Damage Found Ambiguous
By Tred R. Eyerly on
The insured homeowners were successful in establishing coverage for water damage after demonstrating an exception to the exclusion relied upon by the insurer was ambiguous. Plantek v. Town of Hamburg, 948 N.Y.S. 2d 797 (N.Y. App. Div. 2012).
The insureds' basement was flooded after an abutting water main ruptured. Allstate denied coverage…
Policy Limited to Third Party Liabiltiy Does not Provide First Party Coverage
By Tred R. Eyerly on
When the additional insured argued it was entitled to coverage for loss to its cars due to a rain storm, the court disagreed because the endorsement only provided for third party coverage. BMW of N. Am. v. Complete Auto Recon Servs., 2012 S.C. App. LEXIS 218 (S.C. Ct. App. Aug. 1, 2012).
BMW had…
Ensuing Loss Found Ambiguous, Allowing Coverage
By Tred R. Eyerly on
The court determined the ensuing loss provision was ambiguous and found coverage for the home owners in Platek v. Town of Hamburg, 2012 N.Y. App. Div. LEXIS 5371 (N.Y. App. Div. July 6, 2012).
The burst of a water main caused water damage to the insureds' basement. Allstate disclaimed coverage under exclusion 4 for…