Adam O’Brien Secures Summary Judgment in Coverage Bad Faith Dispute

Proving Covered Loss

This case involved claims by the Plaintiffs that Owners Insurance Company breached their insurance policy, unreasonably delayed and denied payment of covered benefits, and engaged in insurance bad faith. Plaintiffs filed a claim with Owners after their property sustained wind and hail damage in May 2023. However, Plaintiffs did not timely repair or replace the roof after the date of loss, nor did they provide a requested proof of loss to Owners.

Between June to October 2023, Defendant issued Plaintiffs actual cash value payments. Plaintiffs later filed suit after Owners denied payment of additional policy benefits based on Plaintiffs failure to satisfy conditions under the insurance policy, including to submit a proof of loss and complete repairs within two years of the date of the loss. Plaintiffs sought treble damages, costs, and attorney’s fees.

The Court analyzed whether Plaintiffs satisfied the conditions for payment of additional benefits under the insurance policy. The Court found that the facts were undisputed that Plaintiffs failed to return the proof of loss and complete repairs within the two-year deadline. The Court also determined that Owners had not waived compliance with the policy conditions by issuing prior payments on the claim.

Therefore, the Court dismissed all claims and entered judgment in favor of Owners.