The Fifth Circuit considered whether the district court properly determined that an excess policy covered flood, but that coverage was limited under the policy's anti-concurrent causation clause (post on district court's prior decision here). The appellate court reversed in part and remanded. Stewart Enter., Inc. v. RSUI Indem. Co., Inc., 2010 U.S. App. LEXIS 16555(5th
Flood Coverage
Fifth Circuit Certifies Question to Louisiana Supreme Court on Assignment of Policies
By Tred R. Eyerly on
The Fifth Circuit asked the Louisiana Supreme Court whether a policy's anti-assignment clause prohibited post-loss assignments of policy rights. See In Re: Katrina Canal Breaches Litigation, 2010 U.S. App. LEXIS 15603 (5th Cir. July 28, 2010).
After Hurricanes Katrina and Rita, Louisiana distributed federal funds to homeowners under its "Road Home" program for repair…
Anti-Concurrent Causation Clause Bars Coverage
By Tred R. Eyerly on
The Fifth Circuit considered the impact on coverage when an anti-concurrent causation clause seems to be contradicted by a "reverse" anti-concurrent causation clause in an endorsement. See Penthouse Owners Assoc., Inc. v. Certain Underwriters at Lloyds, London, 2010 U.S. App. LEXIS 14531 (5th Cir. July 14, 2010).
Penthouse's property was completely destroyed by Hurricane…
Jury Instructions for Anti-Concurrent Causation Clause Considered
By Tred R. Eyerly on
In a case involving destruction of a mobile home by Hurricane Ivan, the Florida Court of Appeal addressed proper jury instructions regarding the burden of proof under an anti-concurrent causation clause. Citizens Prop. Ins. Corp. v. Hamilton, 2010 Fla. App. LEXIS 9885 (Fla. Ct. App. July 7, 2010).
The insureds had both a…
Guest Post – Primer on Flood Insurance Coverage
By Tred R. Eyerly on
Today's guest post is authored by Juanita Martinez, a financial writer offering solutions on insurance related matters. Based in Idaho, Juanita has been associated with the AmPmInsure Community since 2007. AmPmInsure (http://www.ampminsure.org/) is an online forum community where industry professionals provide insurance based solutions. With the onset of hurricane season, Juanita's post on
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Federal Subject Matter Jurisdiction Lacking in Suit Based on Homeowner’s Policy
By Tred R. Eyerly on
Can an insurer remove the insured's state court suit based on supplemental jurisdiction arising under a homeowner's policy when the insured has also sued a separate insurer in federal court under a flood policy? The Fifth Circuit held where the federal court lacked original jurisdiction, removal was improper. See Halmekangas v. State Farm Fire and Cas. Co., 603 F.3d…
Court Ponders Complexities of Measuring Loss
By Tred R. Eyerly on
In Bradley v. Allstate Ins. Co., 2010 U.S. App. LEXIS 9510 (5th Cir. May 10, 2010), the policy's total loss provision was found ambiguous. The case was remanded a factual determination on the amount to which the insureds were entitled for loss of their home.
Hurricane Katrina totally destroyed the insureds' home, leaving only a…
“Cost of Replacement” Does Not Cover Purchase of New Home When Insureds Plan to Rebuild Damaged Home
By Tred R. Eyerly on
Determining the "Cost of Replacement" of the insureds' home was before the court in Nunez v Allstate Ins Co., 2010 U.S. App. LEXIS 8362 (5th Cir. April 20, 2010).
The insureds' home in Louisiana was destroyed by Hurricane Katrina. The insureds received flood policy limits of $75,000 for structural damage and $30,000…
Agent Not Liable for Failure to Procure Flood Insurance
By Tred R. Eyerly on
The insureds originally had flood coverage with Allstate. See Dennis v. Fidelity Nat. Prop. and Cas. Ins. Co., 2010 U.S. Dist. LEXIS 28759 (March 25, 2010). To reduce their premiums, the insureds requested their agent, Lyons Insurance, Inc., to obtain a new flood insurance policy on their home in May 2007. The insureds did not submit the required elevation…
Summary Judgment Improperly Granted for Insured’s Hurricane-Related Property Loss and Business Interruption Claims
By Tred R. Eyerly on
The insured, Versai, managed apartments that were so extensively damaged by Hurricane Katrina that they were uninhabitable. See Versai Mg. Corp. v. Clarendon Am Ins. Co., No. 08-30874, 2010 U.S. App. LEXIS 3479 (5th Cir. Feb. 19, 2010). Versai notified its insurers and submitted claims with the assistance of its private adjusters and…