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A New York court has ruled that an insured's “passing comment” to his insurance agent that he might rent out his home when he moved to Ohio was insufficient to put the insurer on notice of a change in the property's use.
|The Case
Jerry and Linan Sun sued their homeowners' insurance carrier, Allstate Indemnity Company, alleging that Allstate had breached the policy when it failed to indemnify them for the loss they sustained from a fire on March 5, 2015 at the home they owned in Blauvelt, New York.
The Suns contended that from 2002 through November 4, 2014, Allstate made, renewed, and issued to the Suns a “Deluxe Plus Homeowners” insurance policy covering the property. They contended that, in May 2011, Mr. Sun had advised his Allstate agent that he and his family had moved from New York and were residing in Ohio. At this time, the Suns asserted, Mr. Sun requested that his automobile policy with Allstate be canceled, and Mr. Sun said that he planned to sell the property or use it as a rental property.
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