One of the most common questions we hear from our clients has to do with the differences between “actual cash value” and “replacement cost value.” Replacement cost value on its face seems relatively straight forward, but what is “Actual Cash Value” determined under New Jersey law?… Continue Reading
With New York and New Jersey gearing up for what might be the third Nor’Easter in three weeks, now is a good time to review your insurance policies to aid in either making claim if you’ve already suffered damage, or to know what is covered if further damages occur.… Continue Reading
This weekend, I was binging on the Netflix show “The Defenders.” In one of the first episodes, an earthquake hits New York City and a character comments: “Not a lot of people have earthquake insurance up here.” This got me thinking about endorsements to policies, and how likely is it that an earthquake large enough … Continue Reading
As everyone watching the news knows, there were horrific mudslides in Santa Barbara County this week caused by flash flooding in the fire-scarred Santa Ynez Mountains. Due to the fires that have ravaged Southern California in the past month, the scorched earth—lacking shrubs that can absorb water—is especially susceptible to mudslide when there is a … Continue Reading
We received a request for a blog related to decisions on roof matching under homeowner’s policies of insurance. In 1997 the Insurance Commissioner’s Office of Montana took a position on roof matching under the contractual duty to make a policyholder “whole” again, and the query was whether Montana had case law or statutory provisions at … Continue Reading
Recently, we received an inquiry on the hazards associated with New Hampshire’s Insurance-to-Value Policy Rules. For those not familiar with value-policy laws, I refer you to a prior article for a refresher on what a valued policy is, and how it affects claims in New Hampshire.… Continue Reading
Currently, policies of insurance for flood, even if purchased through your insurance agent or normal insurance company, are Federal Flood Insurance Policies issued through the National Flood Insurance Program, if your community is participating in the NFIP. Because the program is federally subsidized, homeowners on floodplains are able to purchase the polices at rates much … Continue Reading
Contrary to most New York policies which require notice to be given “promptly”, Connecticut policies tend to require notice “as soon as practical.”… Continue Reading
As discussed in my previous blog post regarding the tropical storm watch issued for parts of Long Island because of Hurricane Jose, as soon as damage is discovered, it should be reported to the insurance company, even if you think it is minor and not something that the insurance company will bother with.… Continue Reading
In advance of Hurricane Jose, a tropical storm watch was issued for parts of the Long Island and Connecticut. Although the storm is expected to stay out to sea, the area is expecting rain, rough surf, and wind and beach erosion.… Continue Reading
As I watched Hurricane Irma coverage on CNN, following the landfall in Naples, I was reminded of a problem many insureds faced following Superstorm Sandy: “Is the water the result of flood or rain?” While Naples was in the eye of the storm, CNN showed a six block stretch of water covering streets where rain … Continue Reading
While most of our readers are familiar with Business Income loss claims as a result of a natural event such as fire or hurricane, what protects a business when forced to cease operations or can’t get the supplies needed to manufacture goods because of a political event?… Continue Reading
Recently we received a request from a reader inquiring as to who has the responsibility to determine whether a sustained covered loss to a dwelling can be repaired or must be replaced? We always urge a thorough reading of the policy first, to determine what coverages exist, but not all policies are clear. Here’s a … Continue Reading
Recently, Connecticut has had an increase in insurance claims for crumbling foundations due to faulty foundations poured in the 1980s and 1990s. Some foundations poured during this time frame contained a mineral, pyrrhotite, which can cause cracking when it reacts with oxygen and water. It is estimated nearly 20,000 foundations poured contain the mineral.… Continue Reading
As I sit in what is currently a frozen tundra (the New York/ New Jersey Metropolitan area) my dreams of the spring and summer boating season were aroused by a case out of Florida, currently before the Eleventh Circuit Court of Appeals.1… Continue Reading
A common question by insureds has to do with depreciation, and how it is defined when calculating an Actual Cash Value (“ACV”) payment for property loss. For an underlying discussion of Depreciation Values, I direct you to Chip Merlin’s post on November 21, 2016: Determining Depreciation–Are Policyholders Getting Ripped Off?… Continue Reading
For my clients in the shipping industry, be sure to read your renewal policy to ensure that your shipments are covered; don’t assume that your agent or broker will notify you of policy changes, and be especially aware that they (the broker or agent) may not even have a duty to alert you to the … Continue Reading
Mario Lopez was a guest host on the Today show the other day, and described his recent property loss where his backyard collapsed into the street. Photos of the loss are available on Mr. Lopez’ Instagram or the Los Angeles Times. What struck me as blogworthy, other than the horrific loss of his yard, was his … Continue Reading
The most important question asked following a loss will always be “am I covered for this”? As a gentle reminder to our readers, the best way to determine whether you have coverage is to read the policy, and not just the declarations page, because sometimes the answers lie in the policy itself. … Continue Reading
If you’re a property owner in New York City, you already know the high cost of insurance in the city. If you have a mortgage on your property, you also know that property owners in a high flood-risk zone are required to purchase flood insurance. In October, FEMA announced it will revise its flood maps … Continue Reading
As a follow-up to my earlier series on broker negligence in New York and New Jersey, a New Jersey judge, applying New York law, has denied a motion for summary judgment by the broker where the brokerage is alleged to have negligently failed to advise its client it needed a flood policy for a warehouse … Continue Reading
In part one of this series I reviewed broker negligence in New Jersey, in part two, I will discuss broker negligence cases in New York. Contrary to New Jersey where the claim is based in tort, New York allows an agent or broker to be sued under theories of either breach of contract or negligence. … Continue Reading
With New York and New Jersey so close in proximity, it’s hard to imagine that State Law differs so much between the two, but the Courts take very different approaches to how cases against brokers and agents are handled. The main differences arise from New Jersey courts concluding the claims arise in tort, and New … Continue Reading
Force-placed insurance is an insurance policy placed by a lender, bank or loan servicer on a home when the property owners’ own insurance is cancelled, has lapsed or is deemed insufficient and the borrower does not or cannot obtain another policy. They are also known as “creditor-placed, lender-placed or collateral protection” insurance.… Continue Reading
