Providing Temporary Housing to an Insured Who Incurred a Loss is Not Unlimited
Post 5081
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Insured as Lessee is Obligated to Pay Rent
Millar sued Anakka Hartwell, Liberty Insurance Corporation, and Temporary Housing, Inc. (THI) were sued after Hartwell, a policyholder of Liberty, failed to pay rent for a property Millar leased to her through THI. The court granted summary judgment in favor of THI and Liberty, dismissing Millar’s claims, and Millar appealed the decision .
In Joel Millar v. Anakka Hartwell, a Washington resident, Liberty Insurance Corporation, a foreign insurance corporation; and Temporary Housing, Inc. d/b/a CRS Temporary Housing, a foreign entity, No. 85876-9-I, the Court of Appeals of Washington, Division 1 (May 19, 2025) resolved the dispute.
Case Overview
Incident and Claim:
In September 2018, Hartwell reported a water leak in her home and sought Additional Living Expense (ALE) coverage from Liberty for temporary housing. THI was appointed to assist Hartwell in finding temporary accommodation and placed Hartwell at a residence.
Temporary Housing Arrangement:
Liberty Insurance provides home insurance policies that include coverage for temporary housing after a covered loss. THI secured housing for Hartwell in a property owned by Millar, formalized through a Temporary Housing Confirmation. The lease was set from April 1, 2019, to June 30, 2019, with options for extensions.
After the initial lease term, THI requested extensions, and Millar agreed. However, after confirming with Liberty that no further extensions would be granted, THI notified Millar that Hartwell was to vacate by November 8, 2019. Despite this, Hartwell remained in the property until December 2022, making some but not all rent payments.
Legal Proceedings
Millar’s lawsuit sought recovery of unpaid rent and included claims for breach of contract, misrepresentation, and violation of the Washington Consumer Protection Act (CPA). The trial court found no valid contract between Millar and THI or Liberty that would obligate them to continue paying rent after the lease termination date .
Summary Judgment:
The court granted THI and Liberty’s motion for summary judgment, ruling that Millar’s claims lacked sufficient evidence and that any agreement did not extend to indefinite rent payments.
Appeal:
Millar appealed the summary judgment, arguing genuine issues of material fact regarding the existence of a contract and the duty of good faith and fair dealing.
COURT’S CONCLUSIONS
The court concluded that:
1. The Confirmation did not establish a perpetual obligation for THI to pay rent beyond the specified lease period.
2. Millar acknowledged that the lease agreement was between himself and Hartwell, not involving THI or Liberty.
3. THI had provided the required notice before terminating payments, and thus, no breach occurred .
Conclusion
The appellate court affirmed the trial court’s decision, dismissing all claims against THI and Liberty, thereby upholding the ruling that there was no enforceable contract obligating THI or Liberty to continue rent payments after the lease’s termination date.
ZALMA OPINION
Liberty, in accordance with its contract of insurance, found temporary housing for its insured while the damaged premises was repaired. It paid for a lease between the insured Hartwell and Millar for the period of reconstruction. The temporary lease expired and was extended with the agreement of Hartwell and Millar. Hartwell failed to pay all rent due so Millar sued the insurer with whom there was no contract. The good deeds of Liberty and THI arranging for the temporary housing was returned with a law suit even though they were not parties to the lease.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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Happy Law Day
ZIFL – Volume 30, Issue 9 – May 1, 2026
Read the full article at https://www.linkedin.com/pulse/zalmas-insurance-fraud-letter-may-1-2026-barry-zalma-esq-cfe-2tywc, see the video at at and at https://zalma.com/blog plus more than 5300 posts.
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
ZIFL – Volume 30, Issue 9 – May 1, 2026
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year and is written by Barry Zalma.
DOJ Creates National Fraud Enforcement Division
Will the Feds Take on Insurance Fraud? Possibly as Part of a National Anti-Fraud Effort
On April 7, 2026, the Acting Attorney General, Todd Blanche, issued a memorandum establishing the Department of Justice National Fraud Enforcement Division (NFED). The memo describes an ambitious, but perhaps redundant, vision for this ...
When Abalone Died As a Result of Multiple Causes The Efficient Proximate Cause Requires Payment
Post number 5345
Read the full article at https://www.linkedin.com/pulse/efficient-proximate-cause-doctrine-saves-claim-barry-zalma-esq-cfe-yndlc, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
In American Abalone Farms, LLC v. Star Insurance Company et al., H052643, California Court of Appeals, Sixth District (April 27, 2026) the Court of Appeals dealt with an insurance coverage issue that required application of the efficient proximate cause doctrine.
FACTS
American Abalone Farms, LLC ("American Abalone" ) operates an aquaculture farm in Santa Cruz County, California, raising abalone in tanks. In August 2020, the CZU Lightning Complex Fires led to a prolonged power outage and road closures near the farm. As a result, the farm’s water pumps failed, causing the death of most of the ...
Breach of a Specific Condition Precedent Is a Complete Defense
See the video at and at and at https://zalma.com/blog plus more than 5300 posts.
In United Services Automobile Association and State Farm Mutual Automobile Insurance Company v. Anthony Wenzell, 2026 CO 25 (Colo. Apr. 27, 2026) Anthony Wenzell was rear-ended in a car accident. He had a significant prior 2014 accident that required back surgery.
Wenzell claimed underinsured-motorist (UIM) benefits under three policies: (1) the tortfeasor’s liability policy, (2) his own primary UIM policy with State Farm, and (3) an excess UIM policy issued by USAA (under his brother’s policy, which contained an “other insurance” clause making USAA’s coverage excess over any collectible insurance).
After receiving the claims, both USAA and State Farm repeatedly requested that Wenzell execute comprehensive medical-release authorizations so they could obtain his full medical records and ...
It is Fraud to Make the Same Claim Twice
Read the full article at https://www.linkedin.com/pulse/fraud-make-same-claim-twice-barry-zalma-esq-cfe-c4g8c and at https://zalma.com/blog.
Chutzpah: After Being Paid for a New Roof Insured Makes Second Claim For Same Damages
Post number 5347
No One is Entitled to be Paid for the Same Loss Twice
In Mohammed Ali Khalili v. State Farm Lloyds, No. 14-25-00611-CV, Court of Appeals of Texas (April 30, 2026) Khalili maintained a State Farm Lloyds homeowners insurance policy for decades. In 2008 he filed a roof-damage claim; State Farm paid him to replace the entire roof (shingles and gutters). Khalili never replaced the roof and repeated his claim.
BACKGROUND
In 2021 he filed a second roof claim. State Farm’s inspectors found the roof “very old” with extensive non-storm-related damage. The claim was denied because (1) the damage did not exceed the deductible and (2) State Farm had already paid for a full roof replacement.
PROCEDURAL HISTORY
State Farm filed motion for summary...
It is Fraud to Make the Same Claim Twice
Read the full article at https://www.linkedin.com/pulse/fraud-make-same-claim-twice-barry-zalma-esq-cfe-c4g8c and at https://zalma.com/blog.
Chutzpah: After Being Paid for a New Roof Insured Makes Second Claim For Same Damages
Post number 5347
No One is Entitled to be Paid for the Same Loss Twice
In Mohammed Ali Khalili v. State Farm Lloyds, No. 14-25-00611-CV, Court of Appeals of Texas (April 30, 2026) Khalili maintained a State Farm Lloyds homeowners insurance policy for decades. In 2008 he filed a roof-damage claim; State Farm paid him to replace the entire roof (shingles and gutters). Khalili never replaced the roof and repeated his claim.
BACKGROUND
In 2021 he filed a second roof claim. State Farm’s inspectors found the roof “very old” with extensive non-storm-related damage. The claim was denied because (1) the damage did not exceed the deductible and (2) State Farm had already paid for a full roof replacement.
PROCEDURAL HISTORY
State Farm filed motion for summary...
What Must be Done after Notice of a Claim is Received by the Insurer
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A first party property policy does not insure property: it insures a person, partnership, corporation or other entity against the risk of loss of the property. Before an insured can make a claim for indemnity under a policy of first party property insurance the insured must prove that there was damage to property the risk of loss of which was insured by the policy. The obligation imposed on the insured ...
