A commentary on insurance coverage issues in Hawaii and beyond
The cost of removing and replacing cracked flanges to prevent future leakage was not covered as an ensuing loss under a builder's risk policy in RK Mechanical, Inc. v. Travelers Prop. Casualty Co. of Am., 2011 U.S. Dist. LEXIS 83958 (D. Colo. Aug. 1, 2011).
The insured, RK Mechanical Inc., was a…
Interesting read from the Insurance Technology website [here]. The article states what appears to be the obvious. In the aftermath of Hurricane Irene, the insurer may be less than accommodating when claims are reported and adjusted. The article reports that not every claim becomes a nightmare. But, "[w]ith more than a million homeowner claims and…
As noted in today's Christian Science Monitor [here], the insurance implications for losses caused by Hurricane Irene will be tempered by at least two factors. First, much of the damage was caused by flood, a peril not covered under a home owner's or commercial property policy. Only if the insured has additional…
Our prior post reported on the Fifth Circuit's certified question to the Louisiana Supreme Court regarding anti-assignment provisions in policies assigned to the State. Louisiana distributed funds from the "Road Home" program to Louisiana homeowners to repair uninsured and under-insured property damaged by hurricanes. Before funds were issued, the homeowners had to sign a…
Although the insurer paid for some of the mold damage at the insured's home, the Fifth Circuit eventually determined the homeowner's policy did not cover such damage. Rooters v. State Farm Lloyds, 2011 U.S. App. LEXIS 12306 (5th Cir. June 15, 2011).
The policy excluded loss caused by hail to personal property…
The insured homeowners were unsuccessful in arguing around the policy's exclusions when seeking coverage for damage caused by Chinese drywall. Ross v. C. Adams. Constr. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App. June 14, 2011).
Before the insureds purchased and moved into their home, it was renovated. After moving…
At issue was whether damage caused by a crane landing on a building during a tropical storm was covered as an ensuing loss. See Certain Interested Underwriters at Lloyd's London v. Chabad Lubavitch of Greater Ft. Lauderdale, Inc., 2011 Fla. App. LEXIS 8403 (Fla. Ct. App. June 8, 2011).
The insured had two policies…
The insurers' resistance to discovery requests was before the court in Cummins, Inc. v. Ace Am. Ins. Co., et al., 2011 U.S.Dist. LEXIS 46984 (D. Ind. May 2, 2011).
The factual background involved coverage Cummins sought for severe flood damage at its main corporate campus. The insurers had paid over $91 million…
The importance of careful preparation and documentation was the take away lesson in a Texas bad faith case, C.K. Lee v. Catlin Specialty Ins. Co., 2011 U.S. Dist. LEXIS 19145 (S.D. Tex. Feb. 28, 2011).
C.K. Lee owned a commercial shopping center in Houston. Catlin issued a commercial property policy to Lee. …
Failing to understand the relationship between himself, his mortgage company, and his insurer, the plaintiff was left without coverage for damage caused by Hurricane Katrina. Dace v. Novastar Mortgage Inc., 2011 La. App. Unpub. LEXIS 233 (La. Ct. App. April 13, 2011).
Novastar held the mortgage on the plaintiff's property in New Orleans. There were…
