Failure of Insured to Provide Requested Documents Triggers Appraisal Under First Party Insurance Policy [Property Insurance Law Observer Blog]

Those familiar with first party insurance policies have undoubtedly encountered a recurring issue with the interpretation of appraisal provisions – what does it mean to disagree on the amount of loss?  In Valvano Realty Co. v. American Fire and Casualty Co., the United States District Court for the...

California High Court Holds That Notice-Prejudice Rule May Override Choice of Law Clause

Dina Richman discusses the Pitzer College v. Indian Harbor Insurance Company decision and how it impacts enforcement of choice of law provisions when it comes to notice-prejudice and consent clause issues.

Insured Made Whole After Subrogation Recovery [Property Insurance Law Observer Blog]

A property insurer, having paid for covered damage, can recover the loss by seeking reimbursement from its insured where the insured has recovered funds from a responsible third-party, or the insurer may pursue a claim directly against the third-party.  If the insurer makes a direct claim against...

Pennsylanvia Supremes to Decide Whether Actual Cash Value Includes General Contractor Overhead and Profit [Property Insurance Law Observer Blog]

Insurance companies may no longer be allowed to rely on clear policy language that expressly excludes general contractor overhead and profit (“GCOP”) from actual cash value payments.  The Pennsylvania Supreme Court recently agreed to hear argument on the issue in Kurach v. Truck Insurance Exchange,...

Key Questions to Consider in Light of Operation Rubicon’s Investigation into Insurance Fraud in South Florida [Property Insurance Law Observer Blog]

Law enforcement in Miami-Dade County, Florida recently arrested nine individuals described by Florida Chief Financial Officer Jimmy Patronis as the “ringleaders of an elaborate fraud scheme” led by Barbara Maria Diaz de Villegas,[1] owner of the public adjusting company The Rubicon Group.[2]  The...

Free Ride on RCV? Not So Fast! [Property Insurance Law Observer Blog]

Most property insurance policies condition the payment of replacement cost value (RCV) on the property first being replaced or repaired, and courts typically enforce that requirement.  Replacement cost is not owed until the insured completes repair or replacement.  Yet what property adjuster has...

Texas Federal Court Holds that Named Storm Deductible Applies Even in the Absence of Wind Damage [Property Insurance Law Observer Blog]

Judge Nancy Atlas of the Southern District of Texas cut through competing arguments to resolve a high-profile dispute involving a Hurricane Harvey claim through Contract Interpretation 101. Lexington Insurance Company issued a policy to Pan Am Equities, Inc. (Pan Am) covering a property...

Collapse Coverage: Second Circuit Holds That Cracking Walls Do Not Constitute “Collapse” [Property Insurance Law Observer Blog]

Most homeowners’ policies – and property insurance policies in general – contain a limited coverage extension for “collapse.”  The interpretation of that collapse coverage has been litigated around the country for decades, with different jurisdictions reaching considerably different results.  The...

Florida’s “Assignment of Benefits” Bill: A Guide Through the New Statutory Framework [Property Insurance Law Observer Blog]

This week, after 7 years of failed efforts, the Florida Legislature passed a meaningful Assignment of Benefits (“AOB”) reform bill.  Florida Governor Ron DeSantis announced yesterday that he would sign the legislation designed to cut back on abusive AOBs, a practice that has plagued the...

Eleventh Circuit Holds Attorneys’ Fees Are Not Warranted Where Policyholder Filed Suit Instead of Undergoing Appraisal [Property Insurance Law Observer Blog]

The Eleventh Circuit, in J.P.F.D. Investment Corp. v. United Specialty Insurance Co., recently affirmed a district court’s denial of statutory attorneys’ fees to a policyholder that, to resolve a disagreement over the amount of loss, filed suit against its insurer instead of participating in...

Florida Supreme Court Invited to Resolve Assignment-Of-Benefits Controversy [Property Insurance Law Observer Blog]

Introduction At least two Florida appellate courts have directly contradicted each other on an increasingly-important question facing Floridians and the insurance industry. The question is as follows: “Are insurance provisions valid which condition the validity of third-party benefits...

Complicated Cats [Best's Review]

Alycen Moss, of Cozen O'Connor's Global Insurance department, published an article titled, Complicated Cats, for Best's Review.

Texas Court Holds That Unpaid Appraisal Award Does Not Conclusively Establish Causation or Damages in Hurricane Ike Insurance Dispute [Property Insurance Law Observer Blog]

While Hurricane Ike made landfall in Texas almost ten years ago, the resulting litigation is alive and well as evidenced by the recent decision in Texas Windstorm Insurance Association v. Dickinson Independent School District, 14-16-00474-CV, 2018 WL 2436924 (Tex. App.—Houston [14th Dist.] May 31,...

The Imperfect Storm: Harvey Litigation Will Be Fought Under Hailstorm Bill's Rules, While 'Menchaca' Looms in the Background [Texas Lawyer]

Stephen Pate, of Cozen O'Connor's Global Insurance Department, authored an article on his predictions on the course of Hurricane Harvey litigation entitled, "The Imperfect Storm: Harvey Litigation Will Be Governed by Hailstorm Bill's Rules, While 'Menchaca' Looms in the Background."

Can Insurance Appraisers Favor and Advocate For The Party That Selected Them? [Property Insurance Law Observer Blog]

This is a question the Colorado Supreme Court is set to resolve after recently granting Owners Insurance Company’s petition for writ of certiorari in Owners Insurance Company v. Dakota Station II Condominium Association, Inc., 2018 WL 948601 (Col. Feb. 20, 2018). The Colorado Court of Appeals...

Contractors' All Risks Insurance: Where are the limits? A lesson from the Bahamas [Property Insurance Law Observer Blog]

In a rare foray into insurance law, London’s Privy Council considered the interpretation of a Contractors’ All Risk (CAR) policy in Sun Alliance (Bahamas) Ltd v Scandi Enterprises Ltd (Bahamas),[1] and overturned the decision of the Court of Appeal of the Bahamas. The Judicial Committee of the...

Still Crazy After All These Years: Recent Developments on the Standard Mortgage Clause [Property Insurance Law Observer Blog]

A not uncommon scenario: after examining the charred debris of a property fire, investigators note that the building’s alarm failed to sound and automatic sprinkler system similarly failed to activate because neither had been inspected or maintained for over a year. The policy that insured the...

New Jersey Court: Continuous Trigger Ends When Nature of Damage Is Known [Global Insurance Alert]

Melissa Brill and Laura Dowgin discuss the decision in Air Master & Cooling, Inc. v. Selective Ins. Co. of Am., and its impact on progressive property damage claims in New Jersey.

Flood Exclusion Unambiguously Excludes Coverage For $49.5M In Hurricane Sandy Losses Caused By Storm Surge [Property Insurance Law Observer Blog]

Cozen O’Connor attorneys Thomas McKay III, Richard Mackowsky, Charles Jesuit, and Melissa Brill recently secured summary judgment from the United States District Court for the Eastern District of New York in favor of Great Northern Insurance Company on claims asserted by Madelaine Chocolate...

Texas Reforms Insurance Litigation – Section 542A of the Texas Insurance Code 60 Days to Get Your House in Order [Property Insurance Law Observer Blog]

Texas has finally enacted statutory reforms specifically designed to combat abusive insurance litigation. Enacted primarily in response to hailstorm lawsuits, the scope of the reforms are much broader. Effective September 1, 2017, Section 542A of the Texas Insurance Code governs all lawsuits arising...

Positive Signs in the Enforcement of Late Notice Provisions [Property Insurance Law Observer Blog]

[caption id="attachment_1499" align="alignright" width="205"] Alice in Wonderland Rabbit[/caption] This year was off to a positive start in the realm of property insurance with a decision out of the Second Circuit upholding an at times embattled policy provision that is found in nearly every...

Three Western Courts Hold Carbon Monoxide Is a Pollutant but Washington Makes New Anti-Insurer Rules

Michael D. Handler and Thomas M. Jones discuss three recent rulings that are consistent with the trend of courts around the country concluding carbon monoxide is a pollutant under a liability insurance policy.

Reservation of Rights Requirements Adopted by South Carolina Supreme Court

Tracy L. Eggleston and Patrick M. Aul discuss the South Carolina Supreme Court’s recent decision that adopts strict requirements for effective reservation of rights letters.

In the Public's Interest [Best's Review]

Kenneth Levine, co-chair of the Insurance Corporate & Regulatory Group, discusses the misuse of assignment of benefit provisions in connection with homeowners policies and its potential to create a rise in fraudulent claims and rate increases.

Fifth Circuit Clarifies Claims Handling Quandary: When Does a Cause of Action Accrue? [Global Insurance Alert]

Karl A. Schulz discusses the Fifth Circuit's clarification of a typical but potentially tricky question involving property claims in De Jongh v. State Farm Lloyds.

Concurrent Cause Cases: Florida Supreme Court Decides District Split in Favor of Coverage [Global Insurance Alert]

J.D. Dickenson and Elizabeth Fata discuss the recent Florida Supreme Court decision in Sebo v, American Home Assurance Company, which favors the Third Districts reasoning and the concurrent cause doctrine in property loss cases.

IN Catastrophes: Preparing for Hurricane Matthew Claims in the Carolinas [IN the Know]

Patrick Aul discusses what insurers in both North and South Carolina should be mindful of when handling Hurricane Matthew related claims.

Florida Property Losses – Five Things to Know for Hurricane Matthew

Hurricane Matthew is the first major hurricane to strike Florida since Hurricane Wilma in 2005. As the insurance industry prepares for Florida property loss claims due to Hurricane Matthew, we highlight five claims-handling points based on the primary Florida statutory and administrative code provisions most relevant to property insurers with respect to first-party property loss claims, as well as on Florida’s statutory framework for a first-party bad faith claim.

Construction Defect: Oregon Supreme Court Strips Wyoming Sawmills Down to the Studs [Global Insurance Alert]

Julia A. Molander and William F. Knowles discuss the FountainCourt Homeowners Association v. American Family Mutual Ins. Co. decision holds that eviscerated the seminal case of Wyoming Sawmills v. Transportation Ins. Co.

Consequential Damage Caused by Subcontractor’s Faulty Work is Covered under Developer’s CGL Policy [Global Insurance Alert]

On August 4, 2016, the New Jersey Supreme Court joined a long list of states’ high courts when it affirmed a ruling that consequential damages resulting from a subcontractor’s faulty work constituted “property damage” caused by an “occurrence” under the property developer/general contractor’s commercial general liability policies.

Unanimous Washington Supreme Court: No Coverage for Water Damage to Vacant Building [Global Insurance Alert]

Melissa O’Loughlin White discusses a unanimous decision by the Washington Supreme Court that rejected the policyholder’s arguments that certain provisions in a “Vacancy or Unoccupancy” endorsement were ambiguous and must be construed in favor of coverage.

Loss at Separate Buildings Required “Building Specific” Coverage Decision Before Loss Appraisal [In the Know]

Rick Mackowsky and Stacey Farrell discuss a recent case wherein the U.S. District Court for the Southern District of Florida applied Florida law and denied the insured’s motion for summary judgment seeking to compel appraisal of losses sustained at two of her insured buildings.

Common Sense Prevails: State of Collapse Nonexistent 13 Years before Discovery of Decay [Global Insurance Newsletter]

Craig H. Bennion discusses property insurance policies that exclude rot damage that have been called upon to cover rot because the policies extend coverage to collapse — an undefined term — caused by hidden decay, even if the structure remains standing and in use.

Minnesota Court Holds That Prejudgment Interest Statute Does Not Apply to Appraisal Awards [In the Know]

Rick Mackowsky discusses the Minnesota Court of Appeals' decision that pre-award interest is not recoverable on an appraisal award made pursuant to the terms of an insurance policy, absent an underlying breach of contract or actionable wrongdoing.

Texas Joins Modern Trend of Allowing Loss of Use Damages in Total Loss Situations [In the Know]

Ron Tigner and Gregory Hudson discuss the growing trend of jurisdictions no longer recognizing any distinction between the recoverability of loss of use damages between partial and total destruction of personal property.

Colorado Court Finds Legal Marijuana Insurable Under Commercial Property Policy [Global Insurance Newsletter]

The Biggest Property & Casualty Insurance Decisions Of 2018

Stephen Pate, a member in the firm Global Insurance Department, was quoted in Law360's feature "The Biggest Property & Casualty Insurance Decisions of 2018."

Post-Harvey Coverage Suits Fall, But Causation Rows Linger [Law360]

Stephen Pate, of Cozen O'Connor's Global Insurance department, was quoted in an article for Law360 discussing coverage suits following Hurrican Harvey.

Marijuana Insurers in Holding Pattern After Sessions Memo [Business Insurance]

Stephen Pate, of Cozen O'Connor's Global Insurance department, was quoted in the Business Insurance article, Marijuana Insurers in Holding Patter After Sessions Memo.

Attorney says 7th Circuit Ruling in Exploding Grain Bin Case Could Narrow Property Damage Coverage [Cook County Record]

Melissa Brill, of Cozen O'Connor's Global Insurance department, was quoted in an article titled, "Attorney says 7th Circuit Ruling in Exploding Grain Bin Case Could Narrow Property Damage Coverage" which appeared in the Cook County Record.

Insurance Policies on Marijuana Grows in the Fire Zone [KCBS radio]

Stephen Pate, of Cozen O'Connor's Global Insurance department, interviews with KCBS radio about insurance policies on marijuana grows in the fire zone.

Texas Insurance Law Unlikely to Impact Harvey Victims [Bloomberg]

Stephen Pate, of Cozen O’Connor's Global Insurance Department, speaks with June Grosso on Bloomberg Radio’s “Bloomberg Law” about Texas House Bill 1774 that went into effect September 1, 2017.

Insurers Could Dodge Harvey-Related Legal Fights Under Texas Law [Bloomberg]

Stephen Pate, of Cozen O'Connor's Global Insurance Department, was quoted in an article for Bloomberg discussing how insurers could face fewer suits after Harvey due to the Texas House Bill 1774 that was passed earlier this year.

Quick Harvey Claims Offer Little Payoff for Policyholders [Law360]

Stephen Pate, a member of Cozen O'Connor's Global Insurance Department, was quoted in an article for Law360 that discussed how property owners should handle damages caused by Hurricane Harvey.

100 Cozen O’Connor Lawyers Named to the Best Lawyers in America

Lawyers were selected for inclusion in the 2018 edition based on a rigorous peer-review that has been developed and defined for more than 30 years.

Texas Ruling Could Mean Bigger Paydays For Policyholders

Stephen Pate discusses the recent Texas Supreme Court decision that restored protections for policyholders by putting teeth back into statutory provisions that penalize carriers for deceptive practices in an opinion insurance lawyers say is one of the most important in recent history.

Montana Supreme Court Rules Boulder Crash into Home is Considered a Landslide

Craig Bennion of the Global Insurance Department is quoted in LegalNewsLine discussing the July 19th ruling by the Montana Supreme Court that a boulder that thundered down a hillside and crashed into a house was to be considered a landslide for insurance purposes.