The Supreme Court of Alabama ruled in favor of an insurer sued for breach, bad faith, and negligence based on the policyholder's failure to examine his policy. The case is Crook v. Allstate Indem. Co., 314 So. 3d 1188 (Ala. 2020). 

What Happened

Kevin Crook used the services of an agent from The Barker Agency (Barker) to procure a homeowners policy from Allstate Indemnity Company (Allstate) for his lakefront property. The original policy was purchased in 2006 and renewed annually through 2015. At each renewal, Crook was explicitly instructed to read the renewal policy and make an independent determination of whether the policy limits listed were still sufficient for his coverage needs. Crook, however, never read the renewal policies and placed absolute trust in Allstate to determine sufficient limits.