Edward Eshoo

Subscribe to all posts by Edward Eshoo

Allstate’s 180-Day Dwelling Replacement Requirement Trumped by the Illinois Standard Fire Policy

Under the powers vested by sections 397 and 401 of the Illinois Insurance Code, the Director of Insurance has promulgated certain regulations which provide for a Standard Fire Policy.1 Under the regulations, all fire insurance policies must “conform to such form of the Standard [Fire] Policy or, if another form is used, shall for the … Continue Reading

The Massachusetts Standard Fire Policy and the Innocent Co-Insured Doctrine

I wrote about Streit v. Metropolitan Casualty Insurance Company1 in a recent blogpost. In Streit, the Seventh Circuit Court of Appeals concluded that an insurance policy “intentional loss” exclusion which precluded innocent co-insureds from recovering for a fire loss was unenforceable because it violated the minimum level of protection afforded by the Illinois Standard Fire … Continue Reading

Does a Protective Safeguards Endorsement Violate the Standard Fire Insurance Policy?

As discussed in my blog post last week, the 1943 New York Standard Fire Policy (“the Standard Fire Policy”), or a statutory version differing from it only slightly, is used in many states. The Standard Fire Policy potentially affords insureds more fire coverage than they may otherwise have, given the limited number of provisions which … Continue Reading

Standard Fire Insurance Policies Still Provide Basic Protections—A Major Victory for Policyholders and Merlin Law Group

The Seventh Circuit Court of Appeal’s opinion this week in Streit v. Metropolitan Casualty Insurance Company,1 is a major victory for policyholders in Illinois. There, the Seventh Circuit affirmed the lower court judgment entered in favor of my clients, Wesley and Barbara Streit, arising out of Metropolitan’s failure to cover a fire loss to their … Continue Reading

When Must a Negligence Claim Be Brought Against an Illinois Insurance Producer?

Section 13-214.4 of the Illinois Code of Civil Procedure provides that “[a]ll causes of action brought by any person or entity under any statute or any legal or equitable theory against an insurance producer1 . . . concerning the sale, placement, procurement, renewal, cancellation of, or failure to procure any policy of insurance shall be … Continue Reading

The Scope of Appraisal in Illinois

The appraisal clause in a typical residential and commercial property insurance policy provides for an appraisal if the parties disagree as to “the amount of loss.”1 That phrase has been the subject of extensive legal debate between insureds and insurers in terms of its meaning and scope. While most courts have concluded that ascertaining the … Continue Reading

Does a Residence Restriction Violate the Standard Fire Insurance Policy?

Homeowner property insurance policies usually cover the dwelling located at the “residence premises,” which is typically defined as the one, two, three, or four-family dwelling used principally as a private residence and where the insured resides. What happens if the insured is not residing in the dwelling at the time of a fire loss? Is … Continue Reading

Is a “Matching” Dispute Appropriate for Appraisal?

In my last blog post, I discussed Windridge of Naperville Condominium Association v. Philadelphia Indemnity Insurance Company,1 and the issue whether appraisal is appropriate to resolve a dispute over the need for a general contractor to perform repairs following a covered loss. Windridge of Naperville also involved whether appraisal is appropriate to resolve a dispute … Continue Reading

Is a Dispute Over General Contractor Overhead and Profit Appropriate for Appraisal?

In Windridge of Naperville Condominium Association v. Philadelphia Indemnity Insurance Company,1 a federal district court in Illinois recently addressed the issue whether appraisal is appropriate to resolve a dispute over the need for a general contractor to perform repairs following a covered loss. There, hail damaged townhome buildings, requiring repairs. Philadelphia paid for losses it … Continue Reading

What Constitutes Enforcement of a Building Ordinance or Law?

“Ordinance or law” property insurance coverage is typically triggered when, following a covered loss to a covered building, an insured incurs certain costs due to the enforcement of an ordinance or law1 requiring or regulating the demolition, construction, or repair of buildings.2 What does enforcement mean for purposes of triggering building ordinance or law coverage? … Continue Reading

Age as a Factor in Determining Depreciation Used to Calulate Actual Cash Value

In Lains v. American Family Mutual Insurance Company,1 a federal district court in Washington considered two issues involving actual cash value: whether American Family improperly considered age in depreciating the insureds’ personal property loss, and whether American Family improperly depreciated labor costs as applied to the insureds’ dwelling loss. The American Family policy defined “actual … Continue Reading

Using a Motion in Limine to Exclude Evidence of Prior Fires or Prior Insurance Claims

Motions in limine are commonly used to seek a pre-trial ruling regarding excluding inadmissible or prejudicial evidence. At the federal level, Federal Rules of Evidence (“FRE”) 103(d) and 104(c),1 402,2 403,3 and 611(a)4 and Federal Rule of Civil Procedure (“FRCP”) 16(c)5 provide the underlying bases for in limine motions, though the power to rule on … Continue Reading

The Neglect Exclusion Does Not Apply to Pre-Loss Neglect

Homeowner and commercial property insurance policies typically exclude loss or damage caused by or resulting from neglect.1 Under the ISO Homeowners 3-Special Form,2 neglect means “neglect of an ‘insured’ to use all reasonable means to save and preserve property at and after the time of a loss.” Under the ISO Commercial Property Causes of Loss-Special … Continue Reading

Illinois Courts Follow the “Prevention of Performance” Doctrine

Homeowner and commercial property insurance policies typically limit an insured’s recovery to actual cash value1 benefits unless and until the damaged or destroyed property is repaired or replaced. This limitation becomes an issue if coverage is declined and the insurer fails to pay actual cash value benefits as “seed money” to start the repair/replacement process. … Continue Reading

When Does Business Personal Property Become Personal Property?

Although they typically insure personal property owned or used by insureds while it is anywhere in the world, most homeowner insurance policies contain a special limitation of liability for “business” personal property. For example, under the 2011 edition of the ISO Homeowners 3-Special Form, property on the residence premises used primarily for business purposes is … Continue Reading
LexBlog