The insured's inability to present evidence of an agent's standard of professional care meant it could not succeed on a claim for failure to procure adequate coverage for damage to vacant property. Rayfield Pro., LLC v. Business Insurers of the Carolinas, Inc., 2012 N.C. App. LEXIS 1429 (N.C. Ct. App. Dec. 18, 2012).
First Party Insurance
Insurer’s Failure to Settle Does Not Justify Multiple Damages under Unfair Claims Settlement Law
By Tred R. Eyerly on
Although the insurer failed to understand the pertinent law that mandated coverage under the policy, its actions did not rise to an unfair claim settlement practice justifying multiple damages. Gelwan v. Vermont Mut. Ins. Co., 2013 U.S. app. LEXIS 210 (2nd Cir. Jan. 4, 2013).
In 1999, a contractor re-roofed the insureds'…
Insurer’s Summary Judgment Arguments on Proper Trigger and Ensuing Loss Fail
By Tred R. Eyerly on
The insurer promoted a variety of arguments for summary judgment to deny coverage for water damage under a homeowner's policy. Strauss v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 224 (E.D. Wis. Jan. 2, 2013).
Construction of the insureds' home was completed in 1994. In October 2010, they discovered water damage…
Ensuing Loss Provision Does Not Salvage Coverage
By Tred R. Eyerly on
The insured sought relief from the ensuing loss provision when the wear and tear exclusion barred coverage. Rapid Park Indus. v. Great N. Ins. Co., 2012 U.S. App. LEXIS 23107 (2nd Cir. Nov. 9, 2012).
The insureds leased and operated a parking garage on the lower levels of a building in Manhattan. The…
Reference to “Man Made” Movement of Earth Corrects Ambiguity
By Tred R. Eyerly on
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…
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.