Hail damage is a topic of discussion at the Rocky Mountain Association of Public Insurance Adjusters (RMAPIA) Fall Seminar. Mike Poli provided a speech, Traps For the Unwary, and highlighted an Arizona insurance decision,1 which has an excellent discussion about how wear and tear, inadequate maintenance, and concurrent cause exclusions operate in the context of a hail loss.
Continue Reading Hail and Coverage Exclusions Which Do Not Apply
The above picture was taken by “One T” while I was presenting my speech on “Would You Hire You?” I was congratulating him for becoming an excellent insurance educator for public adjusters. He humbly seemed surprised that I would single him out.
The best bets are those that are guaranteed winners, as they aren’t truly bets at all. Insurance companies would prefer a scenario where it’s “heads I win, tails you lose.” One doesn’t need an actuarial degree to understand that collecting premiums on risks that will never result in payouts is a profitable strategy.
Continue Reading Can an Insurer Collect Premiums and Waive Coverage Defenses of Vacancy?
The exclusion for “wear and tear” comes from the concept and need of fortuity in an “all-risk” insurance policy. The 1928 “All Risks Personal Effects Floater” policy was a significant step leading to the modern Open Perils or All Risk policy forms. This 1928 policy insured against “all risk of loss or damage” and scheduled exclusions rather than covering for scheduled perils.1 When considering yesterday’s post, Do Insurers Wrongfully Deny Claims Based Upon the Vague Wear and Tear Exclusion?, the concept of fortuity and “risk” is central to the reason for the wear and tear exclusion.
Continue Reading The Concept of Fortuity and The Wear and Tear Exclusion
The post from yesterday, Developers, Commercial Owners, and Property Managers Need to Be Aware of Vacancy Clauses, had a response from insurance educator Bill Wilson. Wilson accurately noted the following:
Economic downturns can cause an increase in vacancies, as I wrote about thirteen years ago in FC&S Warns Agents and Policyholders to Watch the Vacancy Exclusionary Clause. A lot of other reasons cause commercial buildings to become vacant and may adversely impact the amount of available insurance coverage if the building sustains a loss during that vacancy.
Boating provides a great deal of pleasure to millions of Americans. Spring is here, and the horrible winter weather will be getting better for all of us to enjoy time on the water. For those that own boats, my bet is that you have not read your marine insurance policy covering your boat. I will bet you an additional nickel that you have no clue whether your boat insurance policy has boilerplate language, which requires your boat to be behind a secured fence if the boat is on a trailer or lift.
With the Florida summer heat in full force, I am forced to walk my dog through wooded trails. A common sight on these walks are trees fully hollowed out by termites. This got me thinking, what happens when termites do a number on older frame houses?
Continue Reading Is Termite Damage Covered
A recently reported case drove me a little “batty” (pun intended) because it did not reach a conclusion or cite policy provisions when considering whether a case involving bat infestation would be covered under a homeowners policy.1 The appellate court sent the matter back to the trial court for further consideration and development of facts.
Continue Reading Is Bat Infestation and Damage Covered Under A Homeowners Policy?
An insurance policy is a contract. In disputes involving contracts, it is nearly always the terms and conditions of the contract that will govern. Contracts set out the rights and obligations of the parties involved. Therefore, it is essential to read all the provisions of the contract in their entirety.
Continue Reading Reading Your Full Policy, a Cautionary Tale