Interpreting An Insurance Policy

Covered Losses In Insurance Policy

May 5, 2011 | Mark S. Humphreys

Residents of Grand Prairie, Arlington, Dallas, Fort Worth, Mansfield, Irving, Garland, Mesquite, Richardson, Farmers Branch, Carrollton, and other cities in Texas would probably get confused trying to understand what is a covered loss in an insurance policy and what is not a covered loss.

The Fourteenth Court of Appeals in Texas recently issued an opinion is a case covering this topic. The opinion, styled Markel American Insurance Company v. Lennar Corporation, Lennar Homes of Texas Sales & Marketing Ltd., and Lennar Homes of Texas Land & Construction Ltd., was issued on April 19, 2011.

This case involved several legal issues but the most relevant here dealt with how courts examine these cases to see what is a covered loss versus a loss that may have been incurred that is not covered by the insurance policy. Here is some background.

Exclusions In Insurance Policies

May 3, 2011 | Mark S. Humphreys

Insureds in Weatherford, Mineral Wells, Millsap, Hudson Oaks, Aledo, Azle, Peaster, Cresson, Cool, Brock, Poolville, Springtown, and other places in Texas would have a very hard time reading and understanding what an insurance policy says. That is the main reason why an experienced Insurance Lawyer needs to be consulted whenever a claim is denied.

The Texas Court of Appeals in Amarillo decided a case on April 18, 2011, that dealt with policy interpretation. The style of the case is, Evanston Insurance Company v. D&L Masonry of Lubbock, Inc. In this case the court of appeals granted a summary judgment in favor of D&L Masonry. Here is some background.

Evanston issued a commercial general liability policy to D&L. The policy periods are not in dispute. D&L was engaged in the masonry business and contracted to install masonry and renovations to public schools in Muleshoe, Texas. Because of difficulties and weather concerns, D&L did not do the masonry work until after the window frames and windows had been installed. Because the windows and frames were already in place, D&L had to attempt to seal the area between the frames and brick with mortar. In an effort to prevent masonry mortar from damaging the windows and frames, D&L used masking tape around the window frames and soap and water to soap the windows. After D&L had completed the masonry work, the schools were examined and mortar stains were found on many of the window frames. Additionally, some of the frames were scratched when D&L attempted to remove some of the excess mortar that had fallen on the frames during the masonry work. D&L was eventually charged and they paid to have the windows replaced at a cost of $58,113. D&L paid the amount and submitted a claim to Evanston for reinbursement. Evanston denied the claim stating the policy exclusions applied because the window frame damage was damage to property upon which D&L performed its work. D&L then sued Evanston.

Examination Under Oath Compliance

May 1, 2011 | Mark S. Humphreys

Most insureds living in Grand Prairie, Fort Worth, Dallas, Arlington, Pantego, Hurst, Euless, Bedford, Keller, Colleyville, Saginaw, and other places in Texas would not be sure what it means to submit to an “examination under oath” (EUO).

An EUO is where a person is asked questions, usually by an attorney or insurance investigator, after the person has taken an oath to tell the truth, and the testimony is taken by a certified court reporter.

The United States District Court, Southern District, Houston Division, issued an opinion on April 11, 2011, where part of the case dealt with the requirements of an EUO. The style of the case is, Rossco Holdings, Inc. v. Lexington Insurance Company.

Pre-existing Claims? Fortuity

April 26, 2011 | Mark S. Humphreys

Insurance purchasers in Grand Prairie, Arlington, Dallas, Fort Worth, Mansfield, Irving, Mesquite, Cockrell Hill, Oak Cliff, Richardson, or any other place in Texas need to know about the “known-loss” exclusion in an insurance policy.

One way of understanding this exclusion is by reading the case, Colony National Insurance Company v. Unique Industrial Product Company, L.P. This case was decided by the United States District Court, Southern District, Judge Lynn N. Hughes, on April 7, 2011. This is a summary judgment ruling.

Here is some background.

Vacant Homes And Insurance

April 21, 2011 | Mark S. Humphreys

When someone in Grand Prairie, Fort Worth, Arlington, Dallas, Irving, Mesquite, Garland, Richardson, Carrollton, De Soto, or anywhere else in Texas leaves their house – is it vacant? What if you moved out to renovate it? What if you moved out while it was up for sale? What if you moved out while you had a temporary job out of town? What if you moved out to take care of a sick relative or friend?

When a house seems to be vacant and a loss occurs, the insurance company that insures the house will probably deny the claim under the “vacancy exclusion” in the insurance contract. Of course when this happens, an experienced Insurance Law Attorney needs to be consulted immediately. Whether the house is vacant, as that term is defined in the insurance contract and Texas courts, will determine whether or not there is coverage.

A case decided by the Court of Appeals, Waco, in 1971, is a good place to look for some guidance. The style of the case is, Germania Farm Mutual Aid Association v. Bobby D. Anderson and Lavern Anderson.

Vacant Buildings And Homes And Insurance

April 19, 2011 | Mark S. Humphreys

Structures owners in Weatherford, Aledo, Azle, Peaster, Hudson Oaks, Willow Park, Cresson, Mineral Wells, Millsap, Brock, Peaster, Springtown, and other places in Texas should know how insurance works when it comes to structures that are not “always” occupied.

The Houston Court of Appeals [1 Dist], decided a case in 1992, styled, Balram R. Jerry v. Kentucky Central Insurance Company. This case dealt with the trial court’s ruling in favor of the Kentucky Central Insurance Company (Kentucky). Here is some background.

In November 1985, Jerry and his wife, Valerie, moved to Utah for employment reasons. They retained ownership of their house in Harris County (the property). In April 1986, Valerie returned to the property and discovered it broken into and vandalized. Most of their property was taken or damaged. Six months later, Valerie’s parents visited the property and discovered it destroyed by fire. On November 11, 1986, Jerry reported the fire to Kentucky.

Vacancy Clause In Homeowners Policy

April 17, 2011 | Mark S. Humphreys

Property owners in Grand Prairie, Arlington, Pantego, Dalworthington Gardens, Crowley, Burleson, Lake Worth, Fort Worth, Weatherford, and other places in Texas who own homes and other building should know about the “vancancy clause” in their insurance policy.

Here is a 1969, case dealing with the vacancy clause in a homeowners insurance policy. It was decided by the Houston Court of Appeals and is styled, John J. Knoff et al. v. United States Fidelity and Guaranty Co.

Here are some facts of the case. Knoff and others sued United States Fidelity and Guaranty Co. (Fidelity) for money under a fire insurance policy. The policy excluded coverage when the house had been vacant beyond a period of thirty consecutive days. A fire occurred May 19, 1966, destroying the home. Here is some of the trial testimony.

Title Insurance Policies And Boundary Lines

April 14, 2011 | Mark S. Humphreys

Everybody in Grand Prairie, Weatherford, Parker County, Tarrant County, Fort Worth, Arlington, Mansfield, Cleburne, Mineral Wells, or any other place in Texas has a property line associated with his property. Title to land (property lines) is part of the coverage in a title insurance policy. As a result, the following case should be of some interest to all property owners.

The case deals with an opinion handed down by the Court of Appeals, Fort Worth. It was delivered on March 24, 2011. The style of the case is Jimmy D. Hand v. Old Republic Title Insurance Company. Here is some background.

Hand’s neighbor, Glen Jones, sued Hand over a rock wall that Hand built along the border separating their properties. Specifically, Jones claims that the rock wall “fails to follow the true boundary line and encroaches upon the boundary of his property.” Jones sued for trespass to try title and adverse possession.

Mortgage Accidental Death Policy

April 12, 2011 | Mark S. Humphreys

Mortgage holders in Grand Prairie, Weatherford, Arlington, Aledo, Azle, Fort Worth, Dallas, Irving, Hurst, Euless, Bedford, Pantego, and other places in Texas would find an interest in the case discussed below.

The United States Court of Appeals for the Fifth Circuit, issued an opinion on March 18, 2011, styled, Brenda LeMeilleur v. Monumental Life Insurance Company: Trustees of the National Homeowners Group Insurance Trust, c/o Countrywide Insurance Services, Incorporated. This case is an appeal from the district court where a ruling was handed down in favor of the insurance company. That ruling was affirmed by this appeals court.

Here are some facts:

Insurance And Business Owners

March 31, 2011 | Mark S. Humphreys

Business owners in Grand Prairie, Fort Worth, Dallas, Arlington, Cedar Hill, Irving, De Soto, Duncanville, Mesquite, Garland, Carrollton, Farmers Branch, Richardson, and other places in Texas might be interested in the following case if they find themselves in a position where they are buying or selling a business.

The style of the case is, Ford Bacon & Davis, L.L.C. v. Travelers Insurance Co., et al. This case was decided on March 14, 2011, by the United States Court of Appeals for the Fifth Circuit. This is a case where one company purchased the assets of another company.

A 1996 Asset Purchase Agreement (the agreement) was between Ford, Bacon & Davis, L.L.C. (FBD LLC) and Ford, Bacon & Davis, Inc. (FBC Inc.) The agreement explicity excluded coverage relevant to this lawsuit, which is “asbestos related lawsuits.”