If an Insured Disputes The Carrier's Repair Recommendations, Can The Carrier Issue a Notice of Nonrenewal?

Last week I discussed the carrier's obligation to fully investigate a reported loss.  This week, I want to discuss an interesting issue that arises during sinkhole losses related to the insured's duty to mitigate.  In the event of a sinkhole loss, the insured has an obligation to enter into a subsurface repair contract to remediate the property.  Some carriers wrongfully issue a Notice of Nonrenewal if the insured does not immediately enter such a contract.  The issue that I want to discuss is whether an insured is failing to mitigate his or her damages when contesting the carrier's repair recommendations.

If A Separate Loss Occurs as a Result of A Design Defect, It May Be Covered Under Your Insurance Policy

If there is a design defect to a part of your property, then most insurance policies will contain exclusions for those design defects. Depending on the type of policy that you have and it’s wording, if a separate loss occurs as a result of a design defect, it may be covered under your policy. Well what type of loss could follow from a design defect? There are too many possibilities to try to explain in a list, but consider a wall not designed correctly that falls down and causes direct damage to other areas of the insured property. Replacement of the improperly designed wall may not be covered, but if the claim involves the cost of repairing other areas of the insured property damaged when the wall fell, that should be covered.

New York Courts Recognize the Importance of Business Interruption Coverage to Policyholders Sustaining a Loss

New York Courts Recognize the Importance of Business Interruption Coverage to Policyholders Sustaining a Loss

The life of a business can depend on its insurance carrier doing the right thing and promptly paying damages sustained by it quickly and efficiently after a loss. This is the reason many business customers obtain business interruption coverage from their insurance carriers. New York Courts recognize the importance of business interruption coverage to policyholders sustaining a loss.

 Misleading Insurance Statistics Regarding Hurricane Sandy

For a few months now, the insurance industry has been touting the alleged statistic that 95-96% of New Jersey insurance claims from Hurricane Sandy have been closed. I have had many conversations with clients, public adjusters and other attorneys in the industry and, frankly, nobody believes this statistic. Turns out, this is an accurate, albeit completely misleading, statistic. . . .

New York Court Refuses To Limit The Scope Of Appraisal

A New York trial court refused to issue an order limiting the scope of appraisal in a property insurance case in Merrimack Mut. Fire Ins. Co. v. Seibert, 917 N.Y.S.2d 839
(February 10, 2011). The insurance carrier asked the court to appoint a neutral umpire to set the amount of loss in a claim and asked the court to limit the scope of appraisal to the actual cash value of damages. The policyholders asked the court to appoint a neutral umpire as well, but asked the neutral umpire to determine the value of the loss, actual cash value, cost of repair and replacement, and all issues incident to the property loss. The policyholders also requested a ruling from the court that their appointed appraiser is competent and disinterested and qualified to serve as appraiser.
 

 Carolina Coverage - Are All These Documents Really Necessary?

Most property insurance policies have a requirement that in the event of the loss, documents will need to be provided to the insurance company. What documents must an insured provide? Often times, particularly in disputed claims, carriers will request a laundry list of documents. When this happens, digesting and responding can be overwhelming and an insured is left guessing if all these records are really necessary.

Another Big Win for Policyholders: Florida Federal Court Rules Against Liberty Mutual's

    

Application of Florida Statute 627.706(K) to a Policy That Does Not Define "Structural Damage"
If you work on sinkhole claims in Florida, then you are aware of the consequences of Senate Bill 408, which became law on May 17, 2011. Senate Bill 408 substantially diminished sinkhole coverage in Florida by providing that sinkhole coverage no longer exists, unless the sinkhole activity causes “structural damage” under one of five highly technical definitions. Insurance carriers, including Tower Hill Select Insurance Company, Liberty Mutual Fire Insurance Company, St. Johns Insurance Company, Universal Property and Casualty Insurance Company, and Olympus Insurance Company, immediately pounced on the idea that they could deny sinkhole claims without even testing properties for sinkhole activity. For months, these carriers denied claims on policies in effect prior to SB 408’s effective date without testing the properties for sinkhole activity.