Property Insurance Coverage Insights

Latest from Property Insurance Coverage Insights

New York Court Rules Duty to Defend Policies Must Explicitly Provide for Recoupment of Defense Costs

February 8, 2021

The Second Department, Appellate Division, for the Supreme Court of New York, recently held in a matter of first impression, that an insurance company with a duty to defend may not recover defense costs after a determination that no duty to indemnify or further defend exists—even though the insurer expressly reserved its right to recoup such defense costs—unless the policy explicitly provides for such recovery. See American W. Home Ins. Co. v. Gjonaj Realty &…

Property Insurance Coverage Insights

COVID-19 Business Interruption Insurance Claims – Don’t Overlook the Ordinance Or Law Exclusion

By Wystan Ackerman

April 19, 2020

The legal media have been inundated with articles by lawyers who represent policyholders and insurance companies discussing business interruption claims arising from the COVID-19 pandemic. Some of this discussion has carried over into the mainstream media, including a recent Wall Street Journal article. Much of the discussion focuses on two issues. First, property insurance policies require “direct physical loss or damage” to property (either to the insured property, or non-insured property within a certain…

Property Insurance Coverage Insights

Assignments of Benefits Under Homeowners Insurance Policies: Iowa Supreme Court Rules that Assignment Was Void Because Contractor Was Acting as Unlicensed Public Adjuster

By Wystan Ackerman

February 21, 2020

One practice that has plagued the insurance industry in recent years has been contractors soliciting homeowners to make insurance claims after a hailstorm, for example, and then obtaining an assignment of rights to the claim and pursuing litigation against the insurer. The Iowa Supreme Court recently ruled that a contractor’s attempt to obtain such an assignment of rights was void because the contractor was acting as an unlicensed public adjuster, in violation of state law.…

Property Insurance Coverage Insights

The District of New Jersey Affirms Application of Suit Limitation Provision in Train Derailment

By J. Tyler Butts

June 19, 2019

Although we cover a wide variety of topics and issues on this blog, one issue that recurs with some frequency is the appropriate application of suit limitation provisions that are found in most property policies. The latest case to confirm that suit limitation provisions are valid and enforceable, and to highlight the peril an insured may encounter by not recognizing or addressing those provisions during the course of a claim, is Consolidated Rail Corp. v. …

Property Insurance Coverage Insights

New Statutory Framework Confronts Florida’s AOB Crisis

By Gabrielle Mercadante

May 28, 2019

A new law represents a major step forward to remedy Florida’s assignment of benefits (“AOB”) crisis, which Florida Governor Ron DeSantis has described as a “racket” in recent years. On Thursday May 23, 2019, Governor DeSantis signed House Bill 7065, which addresses the abuse of post-loss AOBs for residential and commercial property insurance claims, by (among other things):…

Property Insurance Coverage Insights

The Southern District Finds Unambiguous Policy Language Controls NYU’s Superstorm Sandy Claim

By Denis O'Malley

March 28, 2019

The United States District Court for the Southern District of New York recently granted an insurer’s motion for summary judgment in a case arising from Superstorm Sandy based on unambiguous policy language providing a significantly lower limit of liability for losses resulting from flood damage. In New York University v. Factory Mutual Insurance Co., 2019 U.S. Dist. LEXIS 45105 (S.D.N.Y. March 19, 2019), the court agreed with Factory Mutual (FM) that the policy’s $250 million…

Property Insurance Coverage Insights

District of New Jersey Applies Anti-Concurrent Causation Provision to Superstorm Sandy Claim

By Kevin Daly

March 27, 2019

In a recent decision arising out of Superstorm Sandy, the United States District Court for the District of New Jersey confirmed the enforceability of anti-concurrent causation provisions. Zero Barnegat Bay, LLC v. Lexington Ins. Co., No. 14-cv-1716, 2019 U.S. Dist. LEXIS 43625 (D.N.J. Mar. 18, 2019).…

Property Insurance Coverage Insights

Failure to Cooperate and Misrepresentation: New York Federal Court Grants Summary Judgment Finding Insured Explanations for False Statements “Dubious”

By Jessica Hamilton

October 1, 2018

While issues of fact can preclude summary judgment in some cases involving failure to cooperate and misrepresentation, a New York federal court recently granted summary judgment to an insurer in this context. In D’Andrea v. Encompass Ins. Co. of Am., No. 15-CV-467-MJR, 2018 U.S. Dist. LEXIS 146446, 2018 WL 4095098 (W.D.N.Y. Aug. 28, 2018), the insured was seeking property insurance coverage for a fire loss that occurred at a two-unit residence purportedly owned by…

Property Insurance Coverage Insights

Residence Premises Condition: New York Trial Court Grants Summary Judgment Based On a Finding of A “Feigned” Affidavit

By Jason DePatie

August 28, 2018

A New York trial court recently granted an insurer’s motion for summary judgment pursuant to the “Residence Premises Condition” contained in a homeowner’s insurance policy. Aschmoneit v. Adirondack Insurance Exchange, 2018 N.Y. LEXIS 3418 (August 7, 2018), The court found that the insured did not reside at the home despite an affidavit asserting that he spent “most weekends” making repairs to the home.…

Property Insurance Coverage Insights

District of New Jersey Finds Post-Denial Communications By Insurer’s Counsel Insufficient to Sustain Bad Faith Claim

By Guest Contributor

June 7, 2018

Under New Jersey law, an insurer cannot be held liable for bad faith in denying an insurance claim if the claim is “fairly debatable.” Therefore, unless a plaintiff can establish a right to summary judgment on the underlying cause of action for breach of contract, the coverage denial is considered “fairly debatable” and the court must dismiss the bad faith claim. See Pickett v. Lloyd’s, 131 N.J. 457, 473 (1993); Tarsio v. Provident Ins. Co.…

Property Insurance Coverage Insights

Blog Authors

New York Court Rules Duty to Defend Policies Must Explicitly Provide for Recoupment of Defense Costs

COVID-19 Business Interruption Insurance Claims – Don’t Overlook the Ordinance Or Law Exclusion

Assignments of Benefits Under Homeowners Insurance Policies: Iowa Supreme Court Rules that Assignment Was Void Because Contractor Was Acting as Unlicensed Public Adjuster

The District of New Jersey Affirms Application of Suit Limitation Provision in Train Derailment

New Statutory Framework Confronts Florida’s AOB Crisis

The Southern District Finds Unambiguous Policy Language Controls NYU’s Superstorm Sandy Claim

District of New Jersey Applies Anti-Concurrent Causation Provision to Superstorm Sandy Claim

Failure to Cooperate and Misrepresentation: New York Federal Court Grants Summary Judgment Finding Insured Explanations for False Statements “Dubious”

Residence Premises Condition: New York Trial Court Grants Summary Judgment Based On a Finding of A “Feigned” Affidavit

District of New Jersey Finds Post-Denial Communications By Insurer’s Counsel Insufficient to Sustain Bad Faith Claim

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