Property Insurance Coverage Law Blog

For decades, the insurance industry has justified legislative reforms, regulatory changes, and restrictions on policyholder rights by pointing to the specter of insurance fraud. We have repeatedly been told that fraudulent claims are a major driver of rising premiums and instability in insurance markets. Legislators and regulators have heard it. The public, newspapers, and te...

The Wall Street Journal recently published an article with a striking headline: “The Home-Insurance Coin Flip: Nearly Half of Claims Result in Zero Payout.” 1 The article highlighted a troubling reality that more claims are increasingly being closed without payment. According to the Journal’s analysis, the five largest homeowners insurers collectively paid nothing on more&nbs...

One of the fundamental principles of insurance is that policyholders should take reasonable steps to prevent loss. So, what happens when the policyholder does exactly what it is supposed to do, successfully prevents damage, and the insurer then argues that there is little or no coverage because the damage never occurred? This unusual situation is …

The post

Last September, I wrote about the federal court decision vacating a massive appraisal award arising from Hurricane Sally damage at the Portofino condominium complex on Pensacola Beach in When a $187 Million Appraisal Award Collapsed in the Courtroom. At the time, I noted that the ruling had the potential to become one of the most significant …

The post

A homeowner receives a notice of nonrenewal. The reason is not an inspection by a person. Nobody knocked on the door. Nobody climbed a ladder. Nobody spoke with the homeowner. Instead, an algorithm reviewing aerial imagery flagged the property as having a deteriorated roof, excessive vegetation, or another condition deemed too risky for continued coverage. …

The p...