The insurance policy phrase "direct physical loss of or damage to" has been in the news the past few years thanks to BI cases stemming from the pandemic.
An Arizona Court of Appeals concluded the Arizona Constitution never contemplated mental injuries when it used the term 'injury,' and the state's high court agreed.
"In order to hold in the manner in which you're arguing we would have to read 'purchase' to mean any change in coverage," said Justice Christine Donohue, who sits on the Pennsylvania Supreme Court bench.
The Supreme Court of Arizona recently answered two questions certified by the U.S. District Court for the District of Arizona that both concerned how an insurer may or may not use depreciation in calculating the actual cash value (ACV) of damaged property.