Court Addresses Insurance Coverage Issues In Case Involving Fire Loss To Building In Process of Being Renovated

In the case of Jinyin Temple of Sino Esoteric Buddhism, Inc. v. Ohio Cas. Ins. Co., No. 18-CV-6593 (C.P. Lacka. Co. March 1, 2023 Nealon, J.), the court denied various Motions for Summary Judgments filed in an insurance coverage action based upon a fire loss involving the Plaintiff’s property.

According to the Opinion, the case involved representatives of a Buddhist temple that had purchased a former Poconos resort with plans to convert the property into a retreat center. The Plaintiff had acquired “builders’ risk - rehabilitation and renovation” insurance coverage from the Defendant insurance companies based upon the recommendation of the Defendant insurance agency.

After the building at issue was destroyed in a fire, the insured submitted a claim to the carrier pursuant to the coverages for direct physical loss to an “existing building” and “building materials” while “in the course of rehabilitation or renovation.”

The insurance companies denied that the fire loss claim on various grounds. In response, the Plaintiff filed this lawsuit for breach of contract and bad faith. In the event that it was determined that no coverage existed, the Plaintiff also asserted a negligence claim against the insurance agency for allegedly failing to recommend and procure an appropriate insurance policy.

As noted, the cross Motions for Summary Judgment were denied, the court found that issues of fact precluded the entry of summary judgment on the motions filed by both the Plaintiff and the various Defendants.

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