In State Farm Fla. Ins. Co. v. Moody, 180 So.3d 1165 (Fla. 4th DCA 2015), review denied, 2016 WL 1734957 (Fla. 2016), a couple of policyholders with Hurricane Endorsements on their policies claimed coverage for damage to their condominiums during Hurricane Jeanne in 2004. However, their only claim to additional coverage was argued after they were paid in full for their other claims under their policies; their common coverage claim was for additional living expense. Their policies limited ALE to 10% of their policy limit if the damage was caused by a "hurricane."
The common basis of their ALE claim to get around the ten-percent-solution as it were, was an argument that the damage was caused by a "tornado," and not by "Hurricane Jeanne." "They alleged their loss was caused by a tornado or microburst, not a hurricane." State Farm Fla. Ins. Co. v. Moody, 180 So.3d 1165, 1167 (Fla. 4th DCA 2015), review denied, 2016 WL 1734957 (Fla. 2016). Two trial courts in two separate lawsuits agreed with the policyholders' contentions.
The appellate court disagreed:
No one disputed that the National Hurricane Center declared the storm system Hurricane Jeanne; the hurricane hit the insureds' condominiums on September 26, which was a day the hurricane warning occurred; and the insureds incurred losses on that day.
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The Hurricane Coverage Endorsement defines hurricane as, “a storm system that has been declared to be a hurricane by the National Hurricane Center of the National Weather Service.” (Emphasis added). There is only one reasonable interpretation of this definition. If the National Hurricane Center names a storm system a hurricane, the entire named storm system, including the elements of the storm, constitutes the hurricane.
Under the loss of use provision in the Hurricane Coverage Endorsement, “[w]hen a hurricane causes the covered dwelling to become uninhabitable, [the insurer] will cover the necessary increase in cost [the insureds] incur to maintain [their] standard of living for up to 12 months,” subject to the ten percent limitation. Here, the National Hurricane Center named the storm system “Hurricane Jeanne” and issued the policy-required hurricane warnings and watches. On September 26, Hurricane Jeanne passed over the insureds' condominiums and the storm system caused their condominiums to become uninhabitable. Therefore, the Hurricane Coverage Endorsement unambiguously applied.
State Farm Fla. Ins. Co. v. Moody, 180 So.3d 1165, 1167, 1169-70 (Fla. 4th DCA 2015), review denied, 2016 WL 1734957 (Fla. 2016) (emphasis by the Fourth District Court of Appeal).
Those who have ears to hear in the coming approach of Hurricane Matthew, let them hear. And let them be safe.
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