CM Report on Property Insurance (2010v2)
2010 Volume 2
Legal Developments Affecting Property Insurers
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
1. In Evolution There Is Conflict
This article addresses the new "Green Building" property insurance wordings and the potential claim issues to arise out of their use.
On January 20, 2009, President Barack Obama, in his inauguration speech said: “We will harness the sun, the winds and the soil to fuel our cars and run our factories. All this we can do! All this we will do!” Whether or not you doubt climate change — the effects of carbon dioxide emissions and the loss of atmospheric ozone — the erection of sustainable “green” buildings is a prominent focus of the Commander In Chief.
Recent opinions from the United States District Court for the Eastern District of Louisiana demonstrate that retained experts should view and inspect the property damage at issue prior to its repair. Otherwise, experts run the risk of being precluded from testifying in court because such testimony is deemed unreliable under Federal Rule of Evidence 702, Daubert v. Merrell Dow Pharmaceuticals, Inc, 509 U.S. 579, 590 (1993), and Daubert’s progeny.
3. Fifth Circuit Finds Ambiguity In Homeowners Policy’s “Total Loss” Valuation Provision
In Bradley v. Allstate Insurance Co., --- F.3d ---, 2010 WL 1839442 (5th Cir. (La.) May 10, 2010), a case arising out of Hurricane Katrina, the Fifth Circuit applying Louisiana law held that certain language within the policy’s valuation provision describing “How We Pay for a Loss” was ambiguous. Id. at *5.
