| Q&A of the Week |
Building Coverage versus Business Personal Property Coverage
A Michigan subscriber recently asked the following question:
Under the Building and Persona Property Form, CP 00 10 06 07, can the insured split coverage for appliances used for refrigeration, HVAC, and the like? In the event that an item could be covered under both building and business personal property, and the insured hit the limit on the business personal property, can the excess be considered on the building coverage?
ANSWER: The building limit could be tapped for appliances used to maintain or service the building, structure, or premises, such as for refrigeration. Refrigeration appliances could also fall under business personal property as machinery and equipment or all other personal property owned by the insured and used in the insured's business. The HVAC system may be more difficult to fit into the personal property category as it may be seen as part of the building as permanently installed fixtures but not necessarily business personal property. Read More |
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| What's New This Week in FC&S |
Handling a Total Auto Loss
An automobile total loss can be a difficult situation for an insured—especially if he or she still owes more money on the car than it is worth. Claim representatives and agents must be sensitive to the needs of the insured and handle claims accordingly. This article explains how a total loss is determined, how to calculate actual cash value (ACV), and what is meant by "diminution in value." Read More |
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| Litigation Watch |
Flood Insurance Coverage Dispute
This case pertains to a motion by the insurer for summary judgment. The dispute is over a flood insurance claim. This case is Lusco v. Allstate Ins. Co., No. 13-66342014, WL 3796423 (E.D. La July 30, 2014).
The Standard Fire Insurance Company, a participant in the Federal Emergency Management Agency's Write Your Own Flood Insurance Program, issued a standard flood policy to Lusco. When Hurricane Isaac hit on August 29, 2012, Lusco suffered property damage.
An independent adjuster inspected the property, and Lusco requested an advance payment of $15,000 for the covered building damage and a $5,000 advance payment for covered contents damage. Standard Fire approved these payments. In October 2012, Lusco submitted a signed and sworn proof of loss to Standard, contending that his building and contents losses totaled $75,076.12. Standard approved this payment.
When FEMA extended the proof of loss submission deadline for Hurricane Isaac-related claims to April 28, 2013, Lusco did not submit any additional proof of loss. However, on December 12, 2013, Lusco sued Standard Fire and his windstorm insurer (Allstate Insurance Company). On June 26, 2014, Lusco submitted an additional estimate of flood-related damage. Standard Fire filed a summary judgment motion seeking a dismissal of Lusco's claims, alleging that Lusco failed to submit a timely signed and sworn proof of loss to support his supplemental claim. 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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