Monday, November 5, 2018

No Coverage, No Bad Faith



In the case of Gerow v. State Auto Prop. & Cas. Co., No. 3:17-cv-203 (W.D. Pa. Oct. 11, 2018 Gibson, J.), the federal court held that, where there is a finding of no coverage under a policy, a court is required to enter judgment in favor of the carrier on the companion bad faith claim. 

This matter arose out of a property damage case from a burst water pipe.  

The insurance policy at issue required continued residency as a condition for the coverage.   The facts confirmed that the insureds were not residing at the property at the time the water pipe burst. 

When the carrier refused to pay based upon the residency requirement under the policy, the insured sued for breach of contract and bad faith.  

After ruling that there was no breach of the policy, the court went on to dismiss the Plaintiff’s bad faith claim as well.  

Anyone wishing to review a copy of this decision may click this LINK.

I send thanks to Attorney Lee Applebaum the writer of the excellent Pennsylvania and New Jersey Insurance Bad Faith Case Law blog  (check it out HERE) and member of the Philadelphia law firm of Fineman, Krekstein & Harris for bringing this case to my attention. 

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