Rental Property Fire Presents a Review of Residential Insurance Policies in Michigan

On September 29, 2015, the Michigan Court of Appeals  affirmed a directed verdict granted to an insurance agent, Jervis-Fehtke (Jervis), on a professional negligence claim brought by a property owner, Williams, as a result of damage to Williams’ rental property caused by fire. After a gas explosion destroyed Williams rental property, Williams submitted a claim to her insurer, Auto-Owners Insurance Company (Auto Owner). Auto-Owners denied the claim because Williams’ policy did not cover losses caused by  explosions originating from outside
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‘Close Enough’ Disclosure During Claim Investigation Earns Homeowner Reversal of Coverage Denial Under Fire Policy

In Rose v. State Farm Fire & Cas. Co., 2014 U.S. App. LEXIS 17312 (6th Cir. Sept. 8, 2014), the Sixth Circuit Court of Appeals reversed and remanded a lower court ruling holding an insured was not entitled to coverage under a fire insurance policy because the he had provided false information regarding his financial status in the post-fire claim investigation. Richard Rose was an Ohio homeowner whose house burned down.  State Farm insured Rose through a homeowner’s policy.  That
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