It was not long after the introduction of liability coverage on an occurrence basis that the problem over progressive losses and the trigger of coverage theories were born, along with a great deal of litigation. The main problem for insurers in this area is that where injury or damage is progressive, each policy during which injury or damage occurs is triggered.

The Continuous Injury Trigger and Progressive Injury Exclusions article discusses some history leading up to the problems centered on the continuous injury trigger and progressive injury. Also discussed are the trigger theories that have been developed by courts over the years, and the standard policy provisions that have been introduced in response to adverse court rulings.

The court cases come from Ohio, New York , and the U.S. Court of Appeals, Sixth Circuit. The first Ohio case deals with the question of whether the statements made by the insured on his insurance application were warranties or representations. This was important since the answer would depend whether the policy was void or simply voidable. The second case from Ohio discussed insurable interest. The insured claimed she had a valid land contract and so, had an insurable interest in real property that was destroyed in a fire; the insurer said otherwise. The New York case had the Court of Appeals of New York addressing the obligation of an insurer to defend and indemnify an additional insured for potential liability arising out of the operations of the primary insured. And, in the final case, the U.S. Court of Appeals for the Sixth Circuit offered an analysis of the ensuing loss clause. Both the majority opinion in this case and the dissent offer good reviews of the clause and its affect on property loss claims.

Questions and Answers

What happens when a home is never occupied as planned? Is there any coverage? See Homeowners Coverage for a Home Never Occupied. Who should insure the engagement ring; the purchaser or the wearer? See Engagement Ring Purchaser vs. Wearer.

An insured wants to be a nice neighbor and mow the yard for another neighbor; is there coverage for the riding mower while off premises? See Mowing the Neighbor's Yard. Does a collision of crystal glasses receive coverage under a homeowners policy? See Collision of Fine Arts. Do replacement cost rights go to relative after the death of the insured. See Replacement Cost Claims After Death.

NFIP General Property Form

The NFIP General Property Form provides coverage for commercial risks such as a nonresidential condominium building or a mercantile or manufacturing concern. See NFIP General Property Form.

Coinsurance

The coinsurance clause in a commercial property policy requires the customer to purchase insurance in an amount equal to a certain percentage of the property's value (either replacement cost or actual cash value, depending upon which valuation method is purchased). Those who work inside the insurance industry often have difficulty understanding and explaining the concept of coinsurance. This article, Coinsurance, offers a thorough and practical guide to coinsurance. It summarizes what coinsurance is, how it works, and how courts view coinsurance.

Unintentional Error or Omission Provisions of Property Policies

A provision of some independently-filed and manuscript property policies that can sometimes save the day for insureds and/or their insurance representatives permits coverage despite the fact that there has been some inadvertent error in the way the policy has been written. Because there is no standard provision, as such, whether coverage applies will depend on the facts and the specific language in question. As some cases discussed reveal, some insurers are not overly generous in permitting an excusable mistake, particularly when a lot of money is at stake. This kind of provision, nonetheless, can give insureds a better chance at coverage than when no such provision applies. The Unintentional Error or Omission Provisions of Property Policies article describes this type of provision.