$60 million breach of contract lawsuit filed following home fire
For many property owners, insurance coverage is very important. An insurance policy protects a person’s financial interests should a devastating accident occur on the property. Depending on the specific policy, insurance can cover everything from theft, to floods and fire. However, insurance policies often have limitations just like any other contract. When a property owner and insurance company have different expectations following a loss, litigation can arise.
This is the case following a fire that destroyed a large mansion. According to reports, the 10,000 square foot home burned to the ground. The 2006 home was worth around $4 million and contained 22 rooms, a swimming pool and an elevator. Experts are still trying to determine exactly what caused the devastating fire — which took seven hours to extinguish and destroyed 90 percent of the home.
Here, the homeowners have taken legal action against their insurance company. They claim that the company hasn’t fulfilled claims made against the policy for the damage caused in the massive fire and has failed to offer reasonable justification for not paying. The homeowners, therefore, have sued for breach of contract. They have sued for almost $60 million in losses that they claim are covered by the insurance policy.
The insurance company, on the other hand, has not commented on the pending litigation.
While people may like to believe that an insurance company is looking out for their best interests in case of emergency, people need to understand that insurance companies are businesses. They are concerned with their bottom line and protecting their own interests. When there is a dispute over insurance coverage, people need to take steps to protect their own legal interests.
Source: Enquirer, “$60M lawsuit filed in Indian Hill mansion fire,” Keith BieryGolick, Jan. 27, 2015
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