No Coverage for Loss at Unidentified Property
Read the full article at https://lnkd.in/gzui_Zqq and at https://zalma.com/blog plus more than 4000 posts.
Dignity Housing West is a California nonprofit corporation that provides low-income housing. Describing itself as a housing developer and listing its only premises as 200 square feet of office space, it applied for and received a commercial general liability insurance policy in Atain Specialty Insurance v. Dignity Housing West, Inc., a California nonprofit corporation, No. 21-15127, USCA, Ninth Circuit (December 3, 2021) the Ninth Circuit dealt with a claim seeking defense and indemnity for a loss at a property not identified at the time the policy was acquired.
FACTS
After a deadly fire broke out at Dignity’s apartment building on San Pablo Avenue in Oakland, Dignity was named in several lawsuits by former tenants. Atain initially tendered defense to Dignity in those actions, but it subsequently withdrew.
ANALYSIS
On Dignity’s insurance application, it disclosed only 200 square feet of office space and represented it was a tenant.
The Ninth Circuit made clear that information in policy declarations controls the scope of insurance coverage. If the declarations indicate that the policy does not provide coverage, no further review of the policy is necessary.
California law is clear that if there is no potential for coverage, there can be no action for breach of the implied covenant of good faith and fair dealing.
ZALMA OPINION
Even the Ninth Circuit found it easy to conclude that there could be no coverage for the liability exposure at an apartment building owned and operated by the insured that was neither disclosed nor identified at the time the policy was acquired. if the policy is still in effect, advise Dignity that the policy is rescinded and return the premium to avoid any further exposure. No insurer should insure any person or entity that has fraudulently obtained the policy.
© 2021 – Barry Zalma
ard. Over the last 53 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.
Go to training available at https://claimschool.com; articles at https://zalma.substack.com, the podcast Zalma On Insurance at https://lnkd.in/gxA7YGe; Follow Mr. Zalma on Twitter at https://twitter.com/bzalma; Go to Barry Zalma videos at https://lnkd.in/g6i3cWu ; Go to Barry Zalma on YouTube- https://lnkd.in/g2hGv88; Go to the Insurance Claims Library – https://lnkd.in/gKCTg53 The last two issues of ZIFL are available at https://lnkd.in/gfZwXxi podcast now available at https://lnkd.in/gJ7zY7T
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LAW:
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Post 5418
Posted on August 5, 2026 by Barry Zalma
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LAW:
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DISCUSSION/ANALYSIS:
As a result, the...
