| Q&A of the Week |
Appliances and Vandalism
A Wisconsin subscriber recently asked the following question:
We have a vandalism loss to a home that is foreclosed and theft of a range and a fridge. We feel that the theft is not covered as the appliances could be considered personal property as they were not permanently attached to the home. The fridge was connected to the water line and the range was connected to the gas line, but both are movable property. The policy specifically excludes personal property but does not mention appliances or fixtures. Do you feel these items would be covered under this policy? Vandalism and theft are covered perils so the question is related to the appliances alone.
Foreclosed Building Coverage
1. "Foreclosed" buildings at the location described on the Declarations for which a Limit Of Insurance
is shown. This includes:
a. Detached garages, storage sheds and other structures at the described location;
b. Outdoor swimming pools and fences;
c. Satellite dishes, radio and TV antennas less than 100 feet in height;
d. Underground pipes, flues or drains; and
e. If not covered by other insurance, materials and supplies on or within 100 feet of the location described on the Declarations for use in the construction, alteration or repair of the "foreclosed" building or other structures at this location.
However, loss to building materials and supplies not attached as part of the building structure caused by or resulting from theft are excluded.
PROPERTY NOT COVERED
The following property is not covered under Foreclosed Building Coverage:
1. Land (including land on which the property is located), water, growing crops or lawns (other than lawns which are part of a vegetated roof);
2. Trees, shrubs and plants (other than trees, shrubs and plants which are part of a vegetated roof);
3. Personal property;
4. Bulkheads, pilings, piers, wharves or docks;
5. Retaining walls that are not attached to the "foreclosed" building; or
6. Bridges, roadways, walks, patios, parking lots or other paved surfaces.
ANSWER: A home is more than simply four walls, a roof, and floors that provide shelter. In order for it to be used for its intended purpose, certain things are considered a given. Heat for one, and the ability to cook and store food, as well as electricity to provide and other such features. While the stove and refrigerator are moveable objects, people do not frequently upgrade them or rearrange them for esthetic purposes. The refrigerator, stove, and dishwasher are necessary parts of making a dwelling habitable. Microwaves are a little different as they are much smaller and readily portable, so unless built in they are personal property.
|
| |
| Litigation Watch |
Going and Coming Rule
An insurance company appealed from an order concluding that an employee suffered a compensable injury. This case is Giordano v. High Point Insurance Company, 2016 WL 5899273.
Giordano worked for High Point. On the day in question, Giordano went to work and parked her car in a parking lot adjacent to a multi-tenant office building. After she parked, she fell on her way to the building in which High Point had its offices. She sustained injuries to her right shoulder.
High Point gave Giordano and its employees access to the parking lot. High Point did not own the lot but leased several parking spots from the landlord. As part of the lease, High Point was partially responsible for maintenance costs of the parking lot.
The judge of compensation found that Giordano was entitled to fifteen percent permanent partial disability. High Point appealed the decision, arguing that the judge erred by concluding that Giordano suffered from a compensable claim.
The Superior Court of New Jersey, Appellate Division, noted that usually a court must defer to the judge of compensation's factual findings and legal determinations. However, where the focus of the dispute is on the alleged error in the judge's evaluation of the underlying facts and the implications to be drawn therefrom, the function of the court broadens. If the review of the record leaves the court with the definite conviction that the compensation judge went so wide of the mark that a mistake must have been made, the appellate court may appraise the record as if it were deciding the matter at inception and make its own findings and conclusions.
In this instance, the appellate court pointed out that New Jersey law on the going and coming rule had evolved over the years and basically became the premises rule. The premises rule declares that employment begins when the employee arrives at the place of employment to report for work and terminates when the employee leaves the place of employment, excluding areas not under the control of the employer. The pivotal questions under the premises rule are: where was the situs of the accident; and did the employer have control of the property on which the accident occurred.
The court found that High Point did have control over the parking lot where Giordano fell High Point leased parking area in the parking lot for its employee and invitees. Per the lease, High Point was responsible for a portion of the operating expenses so it was partly responsible for the maintenance of the lot. Moreover, High Point did control where employees parked by directing them to park in certain spots.
The court ruled that High Point did control the ingress and egress to work by providing employee parking and directing employees where to park. Because High Point had control over the parking lot in this case, the injury is compensable under the premises rule. The court held that Giordano suffered a compensable injury and is entitled to workers compensation benefits because she was injured in the course of employment in an employer-controlled parking lot.
The ruling of the judge of compensation was affirmed.
Editor's Note: The Superior Court of New Jersey, Appellate Division, rules that the going and coming rule in the state has basically been replaced by the premises rule wherein workers compensation benefits are granted if the accident occurred on premises that are under the control of the employer. In this instance, the court found that the accident did occur in an employer-controlled parking lot while the employee was walking toward her place of employment and so, the employee was entitled to workers comp benefits. |
| |
| Fraud of the Week |
Contractor Fraud – Florida
AMOUNT: $1.6 Million
An attorney in Pembroke Pines, Florida, pleaded guilty to thirteen counts of grand theft in Brownard Circuit Court. He was disbarred in March of 2013, a month before he was arrested and thirty-eight years after he was admitted to the Florida Bar.
This attorney represented insurance companies who were attempting to recover damages from at-fault parties involved with claims. In his scheme he would tell client representatives that the claim had not been resolved, recommend that the representative close the file, then negotiate settlements without the client's permission and keep the money from the settlements for personal use.
The attorney used over 1.6 million dollars of funds that belonged to his clients, committed forgery and false notarization, and failed to keep proper trust and accounting records. His scheme might have lasted until the end of his career, but another attorney reported his actions to the Florida Bar.
The guilty attorney will have to spend seven years in prison, pay restitution of $408,000, and spend ten years on probation after his release from prison.
|
| |
|
|
|
| Subscribe to FC&S |
| FC&S Online is the unquestioned authority on insurance coverage interpretation and anlaysis for the P&C industry. FC&S offers unbiased analysis and interpretation and keeps you current on the latest ISO and AAIS revisions. Providing instant access to the very latest information, FC&S is the resource that agents, attorneys, brokers, risk managers, underwriters, and adjusters rely on to research commercial and personal lines coverage issues. |
| • |
Quickly and accurately determine coverage under a policy at the time of loss |
| • |
Research coverage issues and interpretations, including court cases |
| • |
Access experts live to discuss specific situations |
| • |
Find answers to questions based on real-world claims disputes |
| • |
View and print ISO forms |
| • |
Access updates on breaking litigation and bureau developments |
 |
|
| |
| Join Us Live! |
| FC&S editors regularly conduct web-based demos of the service. Feel free to contact Christine Barlow, cbarlow@alm.com, for more information. They only take 30 minutes, a small investment of time that will help you learn all that FC&S Online has to offer. |
| |
| Contact Us |
As always, your comments and questions are welcome.
Contact us at:
FC&S Department
Phone: 800-543-0874
Fax: 859-692-2246
Email: eAlerts@nuco.com |
| |
|
|
