CM Report on Property Insurance (2009v1)
2009 Volume 1
Recent Comments on Property Insurance: Appraisal and Anti-Concurrent Causation
A summary of recent developments in property insurance law regarding substantive
issues on litigation, featuring analysis and commentary on special points of interest.
Articles in this report
In August, 2009, the Appeals Court of Massachusetts held in Ciampa v. USAA Property and Casualty Ins. Co., 2009 WL 2432301 (Mass.App.Ct. Aug. 11, 2009)(unpub.), that the policy's exclusion for damage caused by "wet or dry rot" applied to exclude coverage for the policyholders' claim for "extensive repairs to the structural elements of the home and garage." Id. at *1. The court in Ciampa affirmed the judgment of the trial court after the case was tried at a "jury-waived trial." Id.
In July, 2009, a New York appeals court held in Jahier v. Liberty Mutual Group, 64 A.D.3d 683, 883 N.Y.S.2d 283 (2009), that the homeowners insurance policy's "water damage exclusion" applied to exclude coverage for damage to the insureds' "in-ground swimming pool, the surrounding patio area, and the plumbing which serviced the pool [that] sustained damage when the pool lifted up several inches out of the ground." 64 A.D.3d at 684.
In Mississippi, "appraisers have no power to determine the cause of the [claimed property] damage. Their power is limited to the function of determining the money value of the property which may be damaged by the storm." Munn v. National Fire Ins. Co. of Hartford, 237 Miss. 641, 115 So.2d 54, 55 (1959). Recently, the United States District Court for the Southern District of Mississippi in four separate cases issued orders regarding the propriety of appraisals in connection with first party disputes arising out of Hurricane Katrina. In each order, the Southern District of Mississippi cites to Munn; however, the results are not uniform.
