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Hurricane Michael Flood Proof of Loss Extension

Last month the Assistant Administrator for Insurance, Paul Huang, extended the deadline for submitting a Proof of Loss for flood insurance claims. The Standard Flood Insurance Policy (SFIP) provides that a proof of loss must be submitted within 60 days of the loss. However, FEMA Bulletin W-18026 waived the 60-day proof of loss deadline, extending … Continue Reading

Inflatables—Don’t Get Bounced!

Parents of young children know the birthday party appeal of inflatables like bounce houses, slides, trampolines, and moonwalks. But it’s no picnic to learn that your homeowner’s insurance won’t be of any help if someone gets hurt on an inflatable dragon slide in your front yard at your child’s birthday party. A few tips may … Continue Reading

Claim Handling Requirements by State: Ohio

In states like Ohio where catastrophic disasters are not as common as in other states, policyholders should still understand how important it is to have a claim handled properly. Ohio’s most common disasters are tornadoes, snow, and floods. Although not common, Ohio has been affected by hurricane winds and rain that have reached some areas. … Continue Reading

Beware a Jurisdictional Pitfall: Federal Diversity Jurisdiction and Limited Liability Companies

Our Constitution vests federal district courts with limited subject matter jurisdiction to adjudicate cases and controversies.1 Unless the Constitution or federal statute authorizes the district court to proceed, the district court must dismiss the action or—in the case of removal— remand the matter to state court.2 In addition to other grants, federal statute provides district … Continue Reading

How Can the Schedule of Locations Affect Your Claim?

A ‘schedule of location’ lists property locations where insured assets are located. A homeowner’s policy will list the house, possibly an additional structure. A business policy, when drafted properly, will list all locations insured under the policy where a business loss can occur. Failing to include all such locations can result in denial of what … Continue Reading

Chocolatier Gets Sweet Revenge on Chubb

In a Second Circuit decision, the court of appeals revived Madelaine Chocolate Novelties Inc.’s Superstorm Sandy claim against Chubb for property damage and business interruption for an additional $49 million in coverage. In overruling the lower court, the appellate court found that the lower federal court failed to properly evaluate all the relevant policy provisions.1… Continue Reading

An Injunction Forcing Homeowners to Comply with An Elect to Repair Provision Won’t Fly, Florida’s Third District Confirms

In October 2016, Guillermo Acosta and Laura Pirela (the “Insureds”) suffered a water loss at their home and filed an insurance claim.1 The insurer inspected the property and then invoked the ‘elect to repair provision’ under the policy that stated as follows: If a peril causing a loss and related damage are covered (other than … Continue Reading

What Is A Fire?

Last month, I spoke at the First Party Claims Conference in Rhode Island on the topic of the Standard Fire Insurance Policy, which 165-line form provides coverage for direct loss by fire and lightning.1 My presentation presumed that everyone knows what a fire is, myself included. I changed my mind though after reading the Connecticut … Continue Reading

Texas Governor Suspends TWIA Rate Increase

The Texas Windstorm Insurance Association (TWIA) Board of Directors voted to increase rates for 2019 by 10% at the July 31st Board Meeting.1 TWIA then reported the proposed rate increase to the Texas Department of Insurance and the Commissioner of Insurance must approve the rate. The rate increase would go into effect for all policies … Continue Reading

Hurricane Michael May Trigger Civil Authority Coverage For Businesses In Florida Panhandle

As the Category 4 Hurricane Michael approached Florida, many areas evacuated in preparation for the storm. During a catastrophic event, such as Hurricane Michael, governmental authorities often order evacuation and prohibit access to certain areas due to public safety. The evacuation orders in Florida forced many businesses to shut down their operations until further notice. … Continue Reading

Buyer Beware: Negligence Claims Against Your Agent May Arise On The Day You Get Your Policy!

The Illinois Supreme Court recently overturned the Court of Appeals’ decision in American Family Mut. Ins. Co. v. Krop, 82 N.E. 3d 533, 2017 IL App (1st) 161071 (Ill. App. 2017). As discussed in my post on June 14, 2017, the Illinois Appellate Court had concluded that the insured’s claim against their agent for negligent … Continue Reading

Adjusters and Insurance Companies Should Not Pressure Hurricane Florence Policyholders To Use Favored Contractors

Managed repair is the rage of many insurance companies. To reduce claims costs and better compete on low price, some insurance company adjusters use various techniques to steer or pressure policyholders into using contractors the insurance company wants the policyholder to hire. Independent restoration contractors and public adjusters have legions of stories about how adjusters … Continue Reading
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