A typical "open peril" policy excludes payment for loss of personal property left "in the open." In Twenhafel v. State Auto Prop. and Cas. Ins. Co., No. 08-4275, 2009 U.S. App. LEXIS 20373 (7th Cir. Sept. 14, 2009), the court determined that storm-caused damage to insured's raw wood inventory stored outside under a tarp was not excluded by
First Party Insurance
Business Interruption Coverage Properly Denied
By Tred R. Eyerly on
The insured's claim for Business Interruption coverage failed to survive a motion to dismiss in Kushner Lagraize, LLC v. Phoenix Ins. Co., 2009 U.S. Dist. LEXIS 81576 (E. D. La. Sept. 9, 2009).
The policy provided "property, liability, business income and extra expenses coverages" at the insured's business location. The policy further stated coverage…
Galveston One Year After Hurricane Ike
By Tred R. Eyerly on
You first notice the trees. Approaching Galveston on its main thoroughfare, Broadway Avenue, the trees still stand bare, stripped of all foliage after being seared all night one year ago by Ike's hurricane force winds.
Another thing my wife and I observed driving through Galveston this past Labor Day was the number of houses, seemingly on every…
Flood Damage Not Covered Where Insured Fails to File Proof of Loss
By Tred R. Eyerly on
In Schubert v. Chertoff, No. 07-5075, 2009 U.S. Dist. LEXIS 75835 (E.D. La. Aug. 26, 2009), the court considered whether the insured's failure to file a proof of loss for flood damage should be excused because two previous, untimely proofs of loss were accepted.
The insured had a Standard Flood Insurance Policy…
Notice Pursuant to Builder’s Risk Policy Adequate Even After Damage Discovered
By Tred R. Eyerly on
Whether the contractor gave timely notice of loss to the carrier was the issue before the Eighth Circuit in The Weitz Co., LLC v. Lloyd's of London, No. 08-2835, 2009 U.S. App. LEXIS 17222 (8th Cir. Aug. 4, 2009) [here].
In January 2001, H. Group hired Weitz as general contractor to build a luxury retirement community. H.
Insured’s Complaint Against Agent Survives Motion to Dismiss
By Tred R. Eyerly on
Plaintiffs thought their agent, Scott Management Team, had secured flood insurance under their Allstate policy. See Demouy v. Allstate Ins. Co., No. 06-9629, 2009 U.S. Dist. LEXIS 66254 (E.D. La., July 20, 2009). After Hurricane Katrina struck plaintiffs' home, Allstate denied coverage because plaintiffs did not have a flood insurance policy.
Plaintiffs sued Allstate…
What if Mortgagor Fails to Pay Flood Insurance Premiums?
By Tred R. Eyerly on
If you assume your mortgage company will pay your flood insurance premiums, is the mortgage company liable for damage to property after failing to pay such premiums? In Burks v. Prudential Ins. Co. of North Am., 2009 U.S. Dist. LEXIS 65451 (E.D. La. July 29, 2009), the court answered "no."
Burks purchased her property in June…
Claim for Failure to Act in Good Faith Survives Motion to Dismiss
By Tred R. Eyerly on
In Cecilia Schwaber Trust Two v. Hartford Accident and Indemn. Co., No. JFM-06-0956, 2009 U.S. Dist. LEXIS 59788 (D. Md. July 14, 2009), Hartford unsuccessfully moved to dispose of the insured's claim for failure to act in good faith.
Hartford's policy covered the insured's warehouse for the period March 1, 2002…
Coverage Found Under Unusual Flood Exclusion, Anti-Concurrent Causation Clause
By Tred R. Eyerly on
Two issues were presented in Stewart Enterprises, Inc. v. RSUI Indem. Co., Inc., 2009 U.S. Dist. LEXIS 50156 (E.D. La. June 15 2009). First, was the excess carrier's following form policy was bound by the primary carrier's exception to the flood exclusion? Second, was the primary policy's anti-concurrent causation clause applicable?
The insured owed various cemeteries, funeral…
Bad Faith Claims Based on Insurer’s Lack of Concern Denied
By Tred R. Eyerly on
Bad faith and coverage for looting were at issue in Spears v. State Farm Ins. Co., No. 08-3183, 2009 U.S. Dist. LEXIS 49554 (E. D. La. June 12, 2009). The insureds' home was damaged by Hurricane Katrina on August 29, 2005. A homeowner's policy issued by State Farm provided coverage of up to $179,700 for dwelling and up…