Property in 60 Seconds Archives - Horst Krekstein & Runyon LLC

Property in 60 Seconds: Massachusetts Supreme Court Addresses Surface Water

Flood, Property in 60 Seconds, Surface Water

On July 23, 2024, the Massachusetts Supreme Judicial Court held that an accumulation of rainwater on a roof is not considered “surface water.” Regarding a flood sublimit in a commercial policy, the policyholder argued that surface water only included water that reaches the surface of the earth. In contrast, the insurer argued that the term …

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Property in 60 Seconds: Michigan Department of Insurance and Financial Services Addresses Depreciation of Labor

Depreciation of Labor, Property in 60 Seconds

On July 3, 2024, the Michigan Department of Insurance and Financial Services (DIFS) issued a bulletin, which expressly prohibits insurance companies from depreciating labor when calculating actual cash value (ACV), unless the insured as agreed to the depreciation of labor in exchange for a lower premium. According to DIFS: ACV is ordinarily understood to mean …

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Property in 60 Seconds: Texas Supreme Court Rebukes Contractor Endorsing Public Adjuster Licensing Statute

Contractors, Property in 60 Seconds, Public Adjusters

On June 7, 2024, the Texas Supreme Court issued an opinion upholding the State’s Public Adjuster Licensing Statute against a constitutional challenge by a roofing contractor. The Court held that the statute’s licensing requirement, as well as the dual capacity prohibition, preventing a company from serving as both a contractor and a public adjuster in …

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Property in 60 Seconds: Clear Vacancy Language Earns Insurer Summary Judgment

Bad Faith, Property in 60 Seconds, Vacancy

On May 14, 2024, the Eastern District of Pennsylvania held that the Vacancy provision in a commercial property policy applied, barring coverage for a policyholder’s claim of over $13 million in theft/vandalism damages, while simultaneously denying allegations of bad faith. In 4301 N Delaware QOB LLC v. Selective Insurance Company of South Carolina, the plaintiff policyholder sued Selective for breach of contract and …

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Property in 60 Seconds: Maryland Court Voids Post-Loss Assignment

Assignment of Benefits, Property in 60 Seconds

The Appellate Court of Maryland held today that an anti-assignment clause applied to void a policyholder’s “broad assignment.” In the Matter of the Petition of Featherfall Restoration LLC, the policyholders executed an “Assignment of Claim” which purported to give broad rights under the Policy related to a roof damage claim. Specifically, the “Assignment of Claim” stated …

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Property In 60 seconds: California Addresses Policyholder’s Desire to Video EUO

Examinations Under Oath, Property in 60 Seconds

A California appellate court recently decided that policyholders can video-record insurer representatives and attorneys during Examinations Under Oath. While the California Insurance Code allows video-recordings during Examinations, the Code does not specify which individuals can be recorded, aside from the witness. That court considered the legislative intent of the Code and its language, allowing parties the “right …

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Property in 60 Seconds: Texas and Florida Supreme Courts Weigh In On Appraisal Issues

Appraisal, Property in 60 Seconds

The Supreme Courts for both Florida and Texas issued opinions addressing appraisal in those jurisdictions. The Texas Supreme Court in Rodriguez v. Safeco held that an insurer’s full payment of an appraisal award plus statutory interest precludes the recovery of attorney’s fees in an action under Chapter 542A of the Texas Prompt Payment of Claims Act. The court …

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Property in 60 Seconds: Florida Federal Court Enforces “Time of Loss” Language in Valuation Provision

Property in 60 Seconds

Three years makes a difference. A Florida federal court has held that repair costs are to be measured at the time of the loss – not at the time of the later repairs – when calculating actual cash value/replacement cost. The court considered and applied a common policy provision, which required that the value of …

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Property in 60 Seconds: Florida Supreme Court Defines “Disinterested” Party in Appraisal

Appraisal, Property in 60 Seconds

The Supreme Court of Florida recently resolved a long disputed issue holding that an appraiser who enters into a contingency agreement with a homeowner is not a disinterested party for appraisal purposes. In Jon Douglas Parrish v. State Farm Florida Insurance Company, the Court found that an appraiser cannot be disinterested if they, or a …

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Property in 60 Seconds: Texas Federal Court Addresses Depreciation of Labor

Depreciation of Labor, Property in 60 Seconds

A federal district court in Texas has become the latest to weigh in on whether insurance carriers may depreciate labor when determining the Actual Cash Value (“ACV”) of a loss. On January 11, 2023, in Sims v. Allstate Fire, the U.S. District Court for the Western District of Texas was asked to decide whether labor could be …

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