The Property Insurance Law Observer

OCTOBER 16, 2024

In the recent decision Universal Property & Casualty Insurance Co. v. Qureshi , the Florida Fourth District Court of Appeal held that homeowners cannot recover replacement cost benefits unless they have incurred expenses for repairs. The court emphasized that under both the insurance policy’s plain language and Florida Statute §627.7011(3)(a), payment of replacement cost value is contingent upon the actual completion of repairs.

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The Property Insurance Law Observer

OCTOBER 9, 2024

In a recent decision by the U.S. District Court for the Middle District of Florida, Wood v. GeoVera Specialty Insurance Company (2024 WL 3952571), the court affirmed that unambiguous policy limits remain enforceable even when an appraisal award exceeds those limits. This decision provides valuable guidance for insurers handling post-catastrophe claims.

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The Property Insurance Law Observer

SEPTEMBER 23, 2024

In AMAG Pharmaceuticals, Inc. v. American Guarantee and Liability Insurance Company , the United States District Court for the District of Massachusetts held that a loose bolt or fitting that could be remedied simply by tightening it did not constitute “direct physical loss of or damage” to equipment covered under an all-risk property insurance policy. [1] Background The insured, a pharmaceutical company that owned the rights to a particular drug, contracted with a third-party supplier to manufa

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The Property Insurance Law Observer

SEPTEMBER 16, 2024

In J&S Welding, Inc. v. Liberty Mutual Insurance Company , the U.S. Court of Appeals reviewed a summary judgment ruling in favor of co-defendant West American Insurance Company (“West American”), issued by the U.S. District Court for the Western District of Tennessee. The 6th Circuit held that the property policy’s cosmetic damage exclusion applied to bar coverage because the insured, J&S Welding, Inc.

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The Property Insurance Law Observer

AUGUST 22, 2024

In Life Skills, Inc. v. Harleysville Insurance Company , 2024 WL 3792261 (D. Mass. 2024), the District Court of Massachusetts found that “collapse” provisions within a commercial property policy were ambiguous where a floor merely sagged without completely falling to the ground. Background The plaintiff-insured provided residential and day habilitation services in a property covered by a commercial package insurance policy issued by the defendant-insurer.

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The Property Insurance Law Observer

FEBRUARY 14, 2024

In Mankoff v. Privilege Underwriters Reciprocal Exchange (2024 WL 322297 (Tex. App.—Dallas Jan. 29, 2024)), the Court determined that the term “windstorm” was ambiguous as utilized in the subject insurance policy. The insureds suffered property damage caused by a tornado and subsequently submitted a claim to their insurer. The insurer paid only a portion of the claim because it maintained that the tornado that struck and damaged the property was a “windstorm” and, therefore, the claim was subjec

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The Property Insurance Law Observer

MARCH 4, 2024

In Carrico v. Stillwater Ins. Co. , 23-CV-349-RAJ, 2024 WL 308106 (W.D. Wash. Jan. 26, 2024), the Western District of Washington considered competing motions for partial summary judgment in a property damage case involving a winter storm, where large amounts of rain and melted snow backed the drain up and the force of the water pushed through the exterior door causing damage to the entire basement level.

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The Property Insurance Law Observer

MARCH 12, 2024

The United States District Court for the Western District of Washington decided an insurance coverage case involving Plaintiffs Benny and Guangying Cheung and Defendant Allstate Vehicle and Property Insurance Company. Cheung v. Allstate Vehicle & Prop. Ins. Co., No. C22-1174 TSZ, 2023 WL 9000432 (W.D. Wash. Dec. 28, 2023). The Court considered whether the Plaintiffs’ loss was caused by theft or vandalism, as neither term was defined in the policy.

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The Property Insurance Law Observer

MARCH 18, 2024

A federal court recently held that an insurer could not deny coverage under a homeowner’s policy based upon the failure of the named insured’s son, an “insured person,” to submit to an examination under oath (“EUO”). In Michelle Adeola v. Allstate Vehicle and Property Insurance Company , Civil Action No. 23-cv-4643 (E.D. PA February 16, 2023), the Eastern District of Pennsylvania denied defendant-insurer’s motion for reconsideration of the lower court’s denial of its motion for judgment on the p

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The Property Insurance Law Observer

MARCH 25, 2024

In BCC Partners, LLC v. Travelers Prop. Cas. Co. of America , 2024 WL 1050117 (E.D. Mo. March 11, 2024), the Court determined that the plaintiff property owner, as an additional insured, was not entitled to the same insurance coverage as the named insured where the builder’s risk policy limited the scope of recovery for soft costs and rental income.

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The Property Insurance Law Observer

MAY 21, 2024

The New York Supreme Court recently weighed in on what constitutes “reasonable care” to maintain heat in the context of a first-party insurance policy exclusion requiring such reasonable care. In Michael Zimmerman v. Leatherstocking Cooperative Insurance Company , CV-23-0362, 2024 NY Slip Op 02113 (April 18, 2024), the Plaintiff was in the process of selling his home in Saratoga Springs, New York.

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The Property Insurance Law Observer

JUNE 13, 2024

In MAve Hotel Investors LLC d/b/a The MAve Hotel, et al. v. Certain Underwriters at Lloyd’s, London, et al. , 2024 WL 2830909, (S.D.N.Y. 2024), to preserve diversity jurisdiction, the United States District Court for the Southern District of New York permitted a plaintiff insured to drop non-diverse, dispensable defendant Underwriters at Lloyd’s, London (“Underwriters”) which subscribed to a commercial property insurance policy.

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The Property Insurance Law Observer

JULY 25, 2024

The recent decision of Marcantel v. State Farm Fire , No. 2:22-CV-01511, 2024 U.S. Dist. LEXIS 111077 (W.D. La. June 24, 2024) offers valuable lessons for policyholders regarding the importance of cooperation in the insurance claims process. In Marcantel , the plaintiff suffered damage from Hurricane Laura at two properties in Louisiana. Both properties were insured by State Farm under policies that required the plaintiff to comply with certain “Duties After Loss,” which included exhibiting the

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The Property Insurance Law Observer

JULY 29, 2024

Ending a putative class action, the United States Court of Appeals for the Fifth Circuit examined policy language and two statutes to hold that an insurer does not owe sales tax on top of an actual cash value payment. The citation is Taylor v. Root Ins. Co. , 2024 U.S. App. LEXIS 18240 (5th Cir. July 24, 2024). The policyholder’s contract provided: Limit of liability A.

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The Property Insurance Law Observer

AUGUST 1, 2024

In Zurich American Insurance Company v. Medical Properties Trust, Inc. , 2024 WL 3504060 (Mass. Jul. 23, 2024), the Supreme Judicial Court of Massachusetts held that the term “surface waters,” as used in a limitation contained in commercial property insurance policies, was ambiguous in the context of rainwater accumulating on roofs, thereby finding coverage for the insured.

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