Most water damage is covered in a typical homeowner’s policy. However, this coverage may only extend to the structure, and not the personal property, depending on the policy language. This is because many homeowner’s policies cover all forms of direct physical loss – subject to certain exclusions. Conversely, personal property may be covered by only
Tennessee insurance
Is Cosmetic Roof Damage a “Direct, Physical Loss?”
By Brandon McWherter on
Posted in Bad Faith, Coverage Issues
I recently represented the owner of a commercial property in a hail damage claim in which the metal roof was clearly dented by hail. Remarkably, the insurance company denied the claim on the basis that the roof was still functional. In the process of working with the opposing lawyer to obtain payment, I ran across…
Commas and Sentence Structure are Important After All
By Brandon McWherter on
Posted in Coverage Issues
The Tennessee Court of Appeals’ recent decision in Artist Building Partners v. Auto Owners Mut. Ins. Co. serves as an important reminder in coverage disputes that any ambiguities will be strictly construed against the insurance company and in favor of coverage. Tennessee courts have made clear over and over again that any language in an…
Is Prejudice Required to Avoid Recovery for Failure to Submit to an Examination Under Oath?
By Brandon McWherter on
Posted in Examinations Under Oath
Back in 2009, Parks wrote about the Spears v. TFMIC case and correctly cited it for the proposition that an insured must submit to an examination under oath upon request, and that a failure to do so can bar recovery on an insurance claim. Notably absent from the Spears opinion was any requirement of prejudice…
TN Court of Appeals Impliedly Recognizes Claim for Common Law Bad Faith
By Brandon McWherter on
Posted in Bad Faith
You might recall the 2011 legislation that took away consumers’ right to bring claims against insurance companies under the Tennessee Consumer Protection Act, but that same legislation seemed to recognize the existence of a common law cause of action for bad faith in Tennessee. (click here for a prior post on that topic). Since that…
The Law of California Applies to an Insurance Policy Insuring Tennessee Property?
By Brandon McWherter on
Posted in Coverage Issues
Practitioners should be aware that Tennessee courts generally apply the law of the state where an insurance policy was issued and delivered if there is no enforceable choice of law clause in the policy. Gov’t. Employees Ins. Co. v. Bloodworth, 2007 Tenn. App. LEXIS 404 (Tenn. Ct. App. 2007). So, for example, if a policy…
Morrison v. Allen, Part II
By Brandon McWherter on
Posted in Application Misrepresentations
Yesterday I wrote about the February 2011 landmark decision of the Tennessee Supreme Court in Morrison v. Allen. There was one relatively minor point concerning an alleged misrepresentation in an application that grabbed my attention. In Morrison, the insurance company denied Ms. Morrison’s claim for life insurance benefits based on alleged misrepresentations of…
Should a Deductible Be Subtracted in the Case of a Total Loss?
By Brandon McWherter on
Posted in Valued Policy Law
Consider this scenario – – Jane Doe insures her home for $100,000, with a $1,000 deductible. Unfortunately, Jane’s house burns to the ground and is undeniably a "total loss" within the meaning of Tennessee’s valued policy statute (click here for a prior post on when a loss should be considered a "total loss"). After months…
Should Sales Tax Be Included When Calculating Insured Losses?
By Brandon McWherter on
Posted in Valuation Issues
Chip Merlin, in his Property Insurance Coverage Law Blog, commented a few days ago about a recent case out of Washington, Holden v. Farmers Insurance of Washington, 2010 WL 3504821 (Wash. Sept. 10, 2010). The issue there was whether sales tax should be included in insurers’ calculations of actual cash value and replacement…