| Q&A of the Week |
Dropped Cell Phone
A Puerto Rico subscriber recently asked the following question:
The insured, while driving his vehicle, had his cell phone in his lap. He parked his vehicle, and when he got out of his vehicle the cell phone fell to the ground outside of the vehicle, damaging the phone.
Under a HO-3, was the phone in or upon a "motor vehicle" at the moment of loss? The property was in a motor vehicle, but the damage occurred when the property fell outside the vehicle.
Assuming that the phone is considered an electronic apparatus, will the electronic apparatus special limitation of the HO-3 apply to this loss?
ANSWER: Under the HO 00 03, coverage for personal property is named perils. The insured dropped his phone getting out of the car; there is no named peril for that, therefore there is no coverage. Read More |
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| What's New This Week in FC&S |
Valuable Papers and Records Coverage Form
Many businesses possessing valuable papers and records—such as blueprints, manuscripts, deeds, maps, historical documents, or everyday business records—avoid the financial consequences of physical loss to such items simply by maintaining duplicates at another location. Read More |
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| Litigation Watch |
Property Damage Meaning Discussed
The insured brought an action against its insurer due to the insurer's refusal to defend the insured in a construction defect case. This case is Cool Sunshine Heating & Air Conditioning, Inc. v. American Family Mutual Insurance Company, Civil Action No. 14-CV-1637-WJM-MEH, 2014 WL 7190233 (D. Colo. Dec. 17, 2014).
Cool Sunshine was hired as a subcontractor by Ellis Construction to work on a home. After the work was completed, the owners of the home claimed several construction defects, specifically a problem with a compressor that had been installed by Cool Sunshine. The home owners claimed the compressor did not meet the city code for noise levels and that it was installed to run on only one stage.
The homeowners later filed a lawsuit alleging that the defects were due to negligent or substandard construction practices. They sought costs to professionally repair, replace, or remediate all defects; to complete any remaining work; for loss of use of the residence; for past and future lost income; for medical expenses associated with stress and anxiety; and for other noneconomic damages. Cool Sunshine submitted the lawsuit to its insurer, American Family Mutual. The insurer denied coverage and refused to defend. Cool Sunshine then filed this lawsuit against the insurer. Read More
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| FC&S Ask the Experts |
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Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.
Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here. |
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