When it comes to interpreting coverage for homeowners insurance policies, the courts unanimously agree on certain things—for example, sexual molestation of a minor by an adult, no matter what the motive, reason, or expressed intent, is not covered as a matter of public policy. But there are still many areas of dispute regarding what is covered and what is not.

Where You Reside

The recent uptick in the number of foreclosures has brought this particular issue to the forefront of discussion in the insurance community. Because of the number of vacant properties for sale, people who might not have thought about buying a new home are jumping into the “joys” of homeownership.

Wherein lies the problem? In many instances the insureds bring a new homeowners policy to closing with the effective date being the same date as the closing, as the mortgagee demands. Then they decide that a fresh coat of paint, new countertops, and ceiling fans should be in place before they actually move in (it should be noted that the author pleads guilty as charged—closing on July 14 and actually moving in on August 1). They estimate that this work should take no more than 15 days at the outset.

So, again, what is the problem? A week into the 15 days, a severe thunderstorm occurs. Lightning hits the home's chimney, causing a fire which burns a substantial portion of the dwelling before being contained.