The insureds extensively remodeled their home and installed decks from 1995 to 1996. See Sprague v. Safeco Ins. Co. of Am., 2010 Wash. App. Ct. LEXIS 2419 (Wash. Ct. App., Nov. 1, 2001). The decks were supported by "fin walls." In May 2008, the insureds discovered decay in the fin walls and filed
First Party Insurance
Agent’s Alleged Negligence In Discouraging Need For Flood Insurance Presents Factual Issue
By Tred R. Eyerly on
When the insureds purchased their home along the Mississippi Gulf coast, they discussed obtaining property insurance with Richard Schmidt, a Nationwide insurance salesman employed by Felsher Insurance Agency. See Mladineo v. Schmidt, 2010 Miss. LEXIS 569 (Miss. Oct. 28, 2010). The insureds' complaint alleged they told Schmidt they desired a policy with full…
Water Damage Occurring Simultaneously With Excluded Peril Is Not Ensuing Loss
By Tred R. Eyerly on
The insured's claim for business interruption losses resulting from the city's vacate order was not covered as an ensuing loss in Rapid Park Indus. v. Great N. Ins. Co., 2010 U.S. Dist. LEXIS 115747 (S.D.N.Y. Oct. 15, 2010).
The insured leased a parking garage. Great Northern insured the premises under a business owners' policy. The policy…
Excluded Loss Does Not Constitute Resulting Loss
By Tred R. Eyerly on
The collapse of shoring equipment raised the issue of whether loss of the concrete slab it supported was covered as a resulting loss. The court answered no in Vision One, LLC v. Philadelphia Indemn. Ins. Co., 2010 Wash. App. LEXIS 2322 (Wash. Ct. App. Oct. 19, 2010).
A structural engineer examined the…
Loss Resulting From Excluded Cause Is Not Ensuing Loss
By Tred R. Eyerly on
Preparing for a presentation at the March 2011 ABA, Insurance Coverage Litigation Committee's seminar, my Lexis search function is set to find cases on ensuing loss. One such find was TMW Enter., Inc. v. Federal Ins. Co., 619 F.3d 574 (6th Cir. 2010).
TMW purchased a recently constructed condominium and retail building. TMW…
Is Damage Caused by Water Escaping from Drainage System Excluded as “Surface Water” or Flood?
By Tred R. Eyerly on
Whether damage caused by rainwater escaping from a drainage system was excluded as "surface water" or flood was the issue before the court in M and M Corp v. Auto-Owners Ins. Co., 2010 S.C. LEXIS 326 (S.C. Oct. 11, 2010).
The insured owned a hotel located along a street that was being improved by…
Fifth Circuit Grants Rehearing on Case Involving Measurement of Loss
By Tred R. Eyerly on
A prior post [here] discussed the Fifth Circuit's grappling with the proper measurement for covering loss of a home due to Hurricane Katrina. On rehearing, the Fifth Circuit altered its prior determination that the policy's loss provision was ambiguous. See Bradley v. Allstate Ins. Co., 2010 U.S. App. LEXIS 19476 (5th Cir. Sept.
American Samoa Utility Company Seeks Coverage for Loss Caused by Earthquakes and Tsunamis
By Tred R. Eyerly on
The American Samoa Power Authority (ASPA) recently filed suit against Lloyd’s and HCC International Insurance Company for failure to provide coverage for property loss caused by the earthquakes and tsunamis that struck the area in September 2009. See Am. Samoa Power Authority v. Certain Underwriters at Lloyd’s London, et al., Civil No. 10-00546 ACK-KSC…
Misrepresentation Justifies Insurer’s Cancellation of Policy
By Tred R. Eyerly on
The insurer's cancellation of a policy based upon a misrepresentation of the vehicle being covered was deemed justified by the Hawaii Intermediate Court of Appeal in Farmer v. Pacific Specialty Ins. Co., 2010 Haw. App. LEXIS 525 (Haw. Ct. App., Sept. 30, 2010).
The insured purchased a policy for a used motorcycle…
Insured’s State Law Claims Barred Against Flood Insurer
By Tred R. Eyerly on
After flood coverage was denied, the insured sued under state law theories. See Worthen v. Galveston Ins. Associates, 2010 U.S. Dist. LEXIS 94925 (S.D. Tex. Sept. 13, 2010). The district court dismissed the state law claims on preemption grounds.
The insured purchased a flood policy on August 10, 2007 for his home…