News & Analysis as of

Property Damage State Farm Insurance Industry

Cozen O'Connor

Illinois Insights: An update from Cozen O'Connor (7/21)

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After State Farm rate hike, legislators are pressured to provide relief. Here’s what could be on the table. - “Gov. JB Pritzker wasted no time in calling on state legislators to do something about rising insurance rates...more

Zelle  LLP

Homeowners Did Not Substantially Meet Policy’s Condition Precedent to Recover Replacement Cost Value

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Property Insurance/Replacement Cost - Homeowners Did Not Substantially Meet Policy’s Condition Precedent to Recover Replacement Cost Value - Insurer Did Not Waive Conditions - Henderson v. State Farm Fire and...more

Zelle  LLP

Federal Court Properly Applies Concurrent Causation and Rejects an “Expert” Opinion –Thompson v. State Farm Lloyds

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U.S. Magistrate Judge Andrew Edison of the United States District Court for the Southern District of Texas recently issued a decision granting summary judgment for an insurance carrier in a first-party case involving alleged...more

Zelle  LLP

Cade v. State Farm Lloyds — Insured's Failure to Comply with Policy Conditions Bars Personal Property Claims

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In PAJ, Inc. v. Hanover Ins. Co., the Texas Supreme Court set forth the “notice-prejudice rule,” which states that unless an insurer was prejudiced by an insured’s delay in giving timely notice of its claim or suit, an...more

Rivkin Radler LLP

August 2024 New York Insurance Coverage Law Update

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Merchants Preferred Insurance Company filed a declaratory judgment action in New York seeking a declaration that it had no duty to defend or to indemnify its insureds in an underlying Florida personal injury action arising...more

Cozen O'Connor

Claims Notes

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New York Department of Financial Services (DFS) is concerned that AI’s self-learning behavior increases the risks of unlawful or unfair discrimination. DFS will audit insurers’ use of AI. Such insurers need to maintain...more

Rivkin Radler LLP

Insurance Update - January 2024

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In our January insurance update, we include three state cases addressing some less common situations. It’s not often that a pollution exclusion is interpreted in the context of an auto policy. But the South Dakota Supreme...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - May 30 2023

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The insureds owned a house covered by an all-risk homeowner’s insurance policy issued by Erie Insurance Company of New York that provided coverage for damage to the house unless specifically excluded. The policy contained an...more

Cozen O'Connor

Accepting Coverage for Part of a Claim May Subject an Insurer to the Appraisal Process Under Tennessee Law

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Accepting coverage for part of a claim may subject an insurer to a policy’s appraisal process when the extent of covered damage is in dispute, according to a recent ruling issued by the Eastern District of Tennessee....more

Rivkin Radler LLP

Insurance Update - March 2021

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In our March Insurance Update, we discuss four state supreme court cases and four cybercrime cases. The state high courts address: •From whose perspective should a consent-to-settle provision be judged? •What standard...more

Saul Ewing LLP

Not in Time: Complaint Remanded Where Insurer "Should Have Known" That the Amount in Controversy Exceeded the Jurisdictional...

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After their living room ceiling collapsed, Heather and David Hutchinson submitted a claim for approximately $25,000 in damages to State Farm Fire & Casualty Company under their homeowners' policy. State Farm denied the claim...more

Saul Ewing LLP

N.D. of Mississippi: Insured’s Claim that Insurer Acted in Bad Faith by Failing to Disclose its Practice of Depreciating Labor...

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Mitchell v. State Farm Fire and Casualty Company, No. 3:17cv00170-M, 2018 WL 4572664 (N.D. Miss. Sept. 24, 2018) - Lorine Mitchell submitted a claim to State Farm for damage to her property from a storm. Under the terms of...more

Robinson+Cole Data Privacy + Security Insider

State Farm Uses Drones to Assess Damages from Florence

State Farm has been granted a Federal Aviation Administration (FAA) waiver to use drones, under the Small Unmanned Aerial System (UAS) Rule (or Part 107), to assess damages in communities affected by Hurricane Florence....more

Carlton Fields

Real Property, Financial Services, & Title Insurance Update: Week Ending January 12, 2018

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REAL PROPERTY UPDATE - Standing/Foreclosure: pursuant to Florida Rule of Procedure 1.260, the assignee of a note during pendency of a foreclosure acquires standing of original plaintiff lender - Spicer v Ocwen Loan...more

Robinson+Cole Class Actions Insider

Labor Depreciation Class Action: New Eighth Circuit Decision

This week the Eighth Circuit issued its long-awaited decision in a class action against State Farm involving the “labor depreciation” issue that I have covered extensively on this blog. State Farm prevailed on both the merits...more

Robinson+Cole Class Actions Insider

Update on Labor Depreciation Class Actions

There have been two recent federal district court decisions in the widespread class action litigation involving the application of depreciation to the labor cost component of replacement cost value on property insurance...more

Zelle  LLP

The Graber Opinion is Confirmed as an Outlier in Matters Involving Texas Appraisals

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With the continued onslaught of hail and other weather related litigation in Texas, insurance carriers often elect to resolve claims through the appraisal process outlined in the policy. Insurance carriers historically...more

Cozen O'Connor

Oregon Supreme Court Rules Insurer May Owe Attorney Fees Even After Settlement

Cozen O'Connor on

The Oregon Supreme Court, in Long v. Farmers Insurance Company of Oregon, ruled that “when an insured files an action against an insurer to recover sums owing on an insurance policy and the insurer subsequently pays the...more

Zelle  LLP

A Reprieve from the Deluge of Hail Litigation in Texas

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In recent years, the number of Texas lawsuits arising from hail-damage claims to residential and commercial properties has reached staggering levels, leaving the courts in several Texas counties struggling to keep up with...more

Cozen O'Connor

Fifth Circuit Clarifies Claims Handling Quandary: When Does a Cause of Action Accrue?

Cozen O'Connor on

The U.S. Court of Appeals for the Fifth Circuit issued a per curiam opinion in De Jongh v. State Farm Lloyds, 2016 U.S. App. LEXIS 21432 (5th Cir. 2016) that clarified a typical but potentially tricky question involving...more

Haight Brown & Bonesteel LLP

Repeated Use of Defective Fireplace Triggers Duty to Defend Even if Active Fire Does Not Break Out Until After End of Policy...

In Tidwell Enterprises v. Financial Pacific Ins. Co. (No. C078665, filed 11/29/16), a California appeals court held that that even though a house fire occurred after the policy period, there was nonetheless a possibility of...more

Saul Ewing LLP

Fifth Circuit: If It Ain’t Broke, Not Paying To Fix It Ain’t Bad Faith

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Toney v. State Farm Lloyds, Case No. 14-40914, 2016 WL 4784012 (5th Cir. Sept. 13, 2016). After a March 2012 hail storm damaged his home in Mission, Texas, Kenneth Toney (“Toney”) filed a claim with State Farm Lloyds...more

Cozen O'Connor

Don’t Mess with the Texas Prompt Payment of Claims Act: One Court’s Appraisal Result

Cozen O'Connor on

Virtually all property insurance policies contain an appraisal clause, which outlines the appraisal procedure in broad terms. Those broad terms sometimes do not provide much guidance about the process, or about the effect...more

Cozen O'Connor

More Common Sense: Coverage for Collapse Requires More Than an Engineer’s Finding of Substantial Impairment

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In February this blog commented on Washington State’s newly-adopted definition of “collapse” in property insurance policies that contain no specific definition of the term. (Observer, February 8, 2016, Common Sense Prevails: ...more

Saul Ewing LLP

Bad Faith Sentinel - November 2014

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In This Issue: - Southern District of California Denies Motion to Dismiss Bad Faith Claim in Homeowners Policy Dispute - Northern District of Indiana: No Bad Faith Where Insurer Has a Rational Basis for its...more

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