Search
 
Analysis

Ambiguity of 'reasonable care' gives insured win in claim dispute

The homeowner argued he took reasonable care of his lake house, despite failing to drain a plumbing fixture that burst after the furnace broke.

By Roy A. Mura | June 29, 2021 at 05:00 AM
During review, the term "reasonable care" as used in the policy is ambiguous inasmuch as it is susceptible of at least two reasonable interpretations, at least one of which supports plaintiffs' contention that they exercised reasonable care, and this ambiguity was not resolved by extrinsic evidence. (Credit: Robert Kneschke/Shutterstock.com) During a review, the term “reasonable care” as used in the policy is ambiguous inasmuch as it is susceptible of at least two reasonable interpretations, at least one of which supports plaintiffs’ contention that they exercised reasonable care, and this ambiguity was not resolved by extrinsic evidence. (Credit: Robert Kneschke/Shutterstock.com)

The Supreme Court of New York, Appellate Division, Fourth Department has found that a lower court erred by not awarding partial summary judgment to plaintiffs in an insurance coverage dispute. The case arose from water damage due to the plumbing system freezing because the term “reasonable care” as used in the homeowner’s policy was ambiguous, and the “unoccupied home” exclusion relied on by defendant did not unambiguously apply; plaintiffs’ used reasonable, albeit unsuccessful, efforts to maintain the heat in their seasonal home.

The McAleaveys owned a seasonal lake house that they rarely used and which had been on the market to sell for over a year. With respect to structures coverage, their homeowners policy with Chautauqua Patrons Insurance Company (CPIC) contained this exclusion:

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

Recommended Stories

Defining an occurrence in insurance

Defining an occurrence in insurance

Christine Barlow, CPCU |

Even though the term "occurrence" is defined, disagreement over its meaning has led to conflicts between insurers and insureds; often resulting in litigation.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.