Most homeowners insurance policies contain an exclusion for damage caused by flood.  Thus, unless separate flood coverage is purchased, an insured will not be covered for a flood loss.  Commercial property insurance policies, on the other hand, typically provide some coverage for flood damage.  However, that coverage generally is limited to an amount less than… Continue reading Court Rules a Flood is a Flood is a Flood

In order to succeed in a premises liability action, a person who slips and falls in a retail establishment generally must establish that the business owner knew or should have known of the unsafe condition that led to the patron’s fall and failed to correct it.  In other words, the injured patron must show that… Continue reading New Jersey Supreme Court Clarifies the Mode-of-Operation Rule

For purposes of insurance, property damage losses are generally determined using one of two valuation methods: (1) actual cash value; or (2) replacement cost.  Most insurance policies specifically provide for recovery based on a replacement-cost basis.  However, there are policies that limit recovery to actual cash value.  It is also common for policies to limit… Continue reading Calculating Actual Cash Value under the Broad Evidence Rule

Most third-party liability policies are occurrence based.  In order for a loss to be covered under such a policy, the damage at issue must “occur” during the policy period.  In most instances, it does not matter when a claim is actually asserted as long as the damage took place during the policy period.  A claims-made… Continue reading What Constitutes a Claim Under a Claims-Made Policy?

Seton Hall University School of Law held its 31st annual Red Mass tonight at the Cathedral Basilica of the Sacred Heart in Newark, New Jersey. Dating back to the 13th century, and first held in the United States in 1928, “the Red Mass is traditionally a Solemn Votive Mass of the Holy Spirit celebrated at… Continue reading The Red Mass

The general statute of limitations for breach of contract actions in New Jersey is six years.  That statute generally applies to claims seeking recovery under an insurance policy.  Most first-party property insurance policies, however, contain an express contractual provision, known as a suit-limitation provision, that limits the time period within which an action seeking recovery… Continue reading N.J. Federal Judge Once Again Holds Suit-Limitation Provision No Bar to Sandy Claim

A third-party liability policy provides coverage for an insured’s liability to third parties for personal injury or property damage caused by the insured’s actions.  Most liability policies are occurrence based.  In order for a loss to be covered under an occurrence-based policy, the acts giving rise to liability must “occur” during the policy period.  It… Continue reading Court Upholds Post-Loss Assignment of Claims under Decades-Old Insurance Policies

Under New Jersey law, an insurer may rescind an insurance policy if the insured makes a material misrepresentation in connection with obtaining the policy.  An insured’s misrepresentation is material if when made a reasonable insurer would have considered the misrepresented fact relevant to its concerns and important in determining its course of action.  When a… Continue reading Court Holds Insured’s Misrepresentation Does Not Void Coverage for Innocent Third Parties

Most third-party liability insurance policies contain an intentional acts exclusion that bars coverage for claims arising out of the intentional acts of an insured.  Some policies also contain “assault and battery” and/or “sexual molestation” exclusions.  Such exclusions have been upheld on the basis that it is against public policy for an insurer to indemnify an… Continue reading Court Holds Negligent Supervision Claim Arising Out of Sexual Assault is Not Covered

The New Jersey Insurance Fraud Prevention Act (“IFPA”) provides for the imposition of certain penalties in connection with the commission of insurance fraud by an insured and/or certain individuals acting on behalf of an insured.  N.J.S.A. §17:33A-1 to -30.  The purpose of the IFPA “is to confront aggressively the problem of insurance fraud in New… Continue reading NJ Supreme Court Holds Right to Jury Trial Applies to Claims under the Insurance Fraud Prevention Act