Insurer Cannot Argue “Compliance with Conditions Precedent” if It Denied Coverage

Did your insurance carrier deny coverage?

When an insurance carrier investigates a claim of loss and denies coverage because it concludes that a covered loss has not occurred, the insurance carrier cannot assert the insured’s failure to comply with the policy’s conditions precedent to filing suit as a basis for summary judgment.” Castro v. Homeowners Choice Property & Casualty Ins. Co., 42 Fla. L. Weekly D1842a (Fla. 2017) (reversing summary judgment in favor or insurer regarding insured’s failure to comply with conditions precedent to filing suit when insurer denied coverage under the policy).

Thus, when an insurer denies coverage, they cannot claim when an insured files a lawsuit against it that the insured failed to comply with conditions precedent to filing suit under the policy. The insurer cannot have its cake and eat it too.   This would be just a bit unfair! Don’t you think?

The insurer can argue an insured’s failure to comply with conditions precedent if an insurer admits or acknowledges liability under the policy but a dispute arises regarding quantum. Castro, supra, quoting Tower Hill Select Ins. Co. v. McKee, 151 So.3d, 3-4 (Fla. 2d DCA 2014).

Before filing suit against your insurer, consider whether the insurer already denied coverage.

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

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