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Does a sagging floor constitute a “collapse”? Court finds ambiguity in “collapse.”

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. About The Authors

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Court Addresses Whether Rainwater Accumulation on Roof Constituted “Surface Water”

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. About The Author

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Court Permits Parties to Cure Defective Diversity Jurisdiction in Suit Against Underwriters at Lloyd’s

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. About The Authors

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Court Says Builder’s Risk Policy Limited Coverage for Additional Insureds

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. About The Author

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What’s in a Name (Insured)? Pennsylvania Federal Court Holds Homeowners’ Insurance Policy’s Requirement to Submit to Examination Under Oath Applies Only to Named Insured

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 pleadings, and held that the defendant-insured did not present any errors of law or fact, or new evidence, or a change in controlling law that would preclude coverage based upon the named insured’s son’s failure to submit to an EUO. Specifically, the Court

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There’s No Place Like Home! Kansas Federal Court Holds Homeowner’s Policy Coverage Requires Policyholder to Physically Reside at Residence

A federal court recently held that an insurer may deny coverage under a homeowner’s policy for a “residence premises” when the insured never actually lived at the premises. In Sina Davani v. Travelers Personal Insurance Company and Geico Insurance Agency, LLC, Case No. 22-1244 (D. Kan. October 26, 2023), the District of Kansas granted defendant-insurer’s motion for summary judgment holding that the plaintiff-insured never resided at the insured premises and residence in the context of an insurance contract requires an insured’s physical presence at a certain location and an intent to remain at the location for an indefinite period of time. About The Author

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Florida Begins New Era with Major Property Insurance Reforms

For the fourth time since 2019, the Florida Legislature has enacted property insurance reforms aimed towards stabilizing a beleaguered insurance market. The bill, S.B. 2-A, creates a reinsurance assistance program, establishes additional oversight for insurers with high volumes of hurricane claims, and reforms many aspects of the claims process, including the timing for paying and adjusting claims. The reforms further eliminate one-way attorney fee awards to policyholders and ban assignment-of-benefits agreements.  In this article, we will focus on the changes to the claim adjustment process and coverage and bad faith litigation. About The Authors

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Ninth Circuit Finds that “Subsidence Exclusion” Bars Coverage for Landslide Loss

The Ninth Circuit Court of Appeals recently issued an unpublished opinion in Atain Specialty Insurance Company v. JKT Associates, Inc., Case No. 20-16366 (9th Cir., March 11, 2022), finding that a liability policy’s “Subsidence Exclusion” barred coverage for a lawsuit arising out of a landslide.  About The Author

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Renewal of Property Policy Requires Living Insured

A policy renewal requires a living insured to form a valid insurance contract, the Sixth Circuit recently ruled. In Boby Davis, et al. v. Westfield Ins. Co., Case No. 21-2797 (6th Cir. Mar. 14, 2022), Della Shields received a yearly homeowner’s insurance policy covering her home in Muskegon, Michigan from 2013 until her death in March 2018. Shields was the sole named insured in the yearly policy declarations. About The Authors

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When Better Late Than Never Isn’t Good Enough: Florida Federal Court Grants Summary Judgment For Insurer In Late-Reported Hurricane Claim

On September 27, 2021, Judge Jose Martinez of the U.S. District Court for the Southern District of Florida granted summary judgment in favor of Scottsdale Insurance Company in LMP Holdings Inc. v. Scottsdale Ins. Co., case no. 20-24099. The case arose out of a Hurricane Irma claim reported more than two years after the storm. The insured, LMP Holdings, Inc., owned a commercial property located in Miami. The insured claimed the property sustained damage from Hurricane Irma, which struck South Florida on September 10, 2017. The insured’s handyman and one of the insured’s officers inspected the property the day after the storm. The handyman noticed punctures on the roof, which he patched, and a panel from one of the air

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About The Property Insurance Law Observer

For more than five decades, Cozen O’Connor has represented all types of property insurers in jurisdictions throughout the United States, and it is dedicated to keeping its clients abreast of developments that impact the insurance industry. The Property Insurance Law Observer will survey court decisions, enacted or proposed legislation, and regulatory activities from all 50 states. We will also include commentary on current issues and developing trends of interest to first-party insurers.

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