Property insurance policies typically require that the insured repair or replace damaged property before recovering on a replacement cost value (RCV) basis. Until then, the insured is entitled only to the actual cash value (ACV) of the damaged property. The
Property Insurance Coverage Insights
Property Insurance Coverage Insights, published by Robinson & Cole LLP, focuses on legal issues related to property insurance policies. The blog covers topics such as duty to defend and indemnify under insurance contracts, recoupment of defense costs, business interruption claims including COVID-19 related exclusions, assignment of benefits disputes, enforcement of suit limitation provisions, and legislative developments addressing insurance claim abuses. It analyzes court rulings and statutory changes affecting insurers, insureds, and contractors, with attention to policy interpretation, exclusions, and procedural requirements in property insurance litigation and claims handling.
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Late Notice in Florida: Appellate Court Affirms Finding of No Coverage Where Insurer Prejudiced In Determination of Extent of Damage
Notice provisions in property insurance policies typically require the insured to promptly provide notice of a loss to the insurer. Despite the plain language requiring prompt notice, some jurisdictions require that an insured’s late notice cause some prejudice to the…
Computer Fraud Policy: Eleventh Circuit Affirms District Court’s Finding Of No Coverage For $11M Fraud Claim
In Interactive Communities Int’l v. Great Am. Ins. Co., 2018 U.S. App. LEXIS 12410 (11th Cir. May 10, 2018), the insured sold “chits,” which have a specific monetary value and can be redeemed by loading their monetary value to…
Vacancy Exclusion: Eleventh Circuit (Florida) Weighs In On “Dwelling Being Constructed” Exception
Vacancy exclusions are commonplace in many homeowner policies, and typically exclude coverage for certain types of losses if the home is vacant and/or unoccupied. Litigation involving vacancy exclusions can arise when terms in the provision are not defined and an…
Texas Federal Court Holds Faulty Workmanship Exclusion Applies to All Damage Caused By Drilling Gear Malfunction, Rejects Insured’s Claim for Covered “Resulting Loss”
When does an excluded loss end and a covered “resulting loss” begin? This thorny question was the subject of a recent decision out of the Southern District of Texas, EMS USA, Inc. v. The Travelers Lloyds Insurance Co., No.…
Drones and Insurance: How Unmanned Aircraft Systems Can Assist Insurers in Timely and Effectively Evaluating Property Damage Claims
By Max Daley
A typical claim for a homeowner will involve some type of damage to the property, which, in turn, prompts the insurer to perform an inspection of the insured property, so as to assess the cause and extent of the alleged…
The Protective Safeguards—Heat Maintained Endorsement Means What it Says: Eastern District of New York Grants Summary Judgment For Loss From Frozen Pipes
By Daniel Bryer
Typical first party property policies include provisions that address failure to maintain heat as excluded losses. The Eastern District of New York recently analyzed a specific endorsement requiring that heat be maintained at a particular temperature.
In Read Prop. Group…
The Water Exclusion: New York’s Fourth Department Interprets The Definition of Surface Water
The “Water Damage” exclusion incorporated in many property insurance policies is the subject of much litigation, including the scope and applicability of the “surface water” exclusion to various water damage scenarios. The New York Appellate Division, Fourth Department recently interpreted…
Freezing Exclusion: Third Circuit Affirms District Court’s Grant Of Summary Judgment To Insurer
By Dana Horton
Many typical homeowner’s insurance policies contain an exclusion for damages as a result of freezing unless the homeowner uses “reasonable care” to maintain heat in the home. While this can be a fact-specific inquiry, the Third Circuit, applying Pennsylvania law,…
Work Product and Attorney-Client Privilege Concerning Documents Drafted Prior To Litigation: Eastern District Of New York Finds Insurer’s Documents Are Not Discoverable
Insurers retain outside counsel during claim investigations for a variety of reasons, including, among others, providing coverage advice, assisting in reviewing and responding to communications with insureds that have legal implications, and providing settlement recommendations. When coverage disputes arise, policyholders…