Insurer wins COVID dispute over vacation rental

A North Carolina appeals court on Tuesday upheld a lower court ruling in favor of an insurer in a COVID-19 business interruption case filed by the owner of a rental property in holidays.

Four Roses LLC, based in Kill Devil Hills, North Carolina, had filed a lawsuit against its insurer, First Protective Insurance Co., based in Lake Mary, Florida, arguing that it was entitled to coverage against power interruptions. activity because of the financial losses he had suffered due to the county ban. the entry of a non-resident into its jurisdiction due to the pandemic, according to the decision of a three-judge panel of the Raleigh Court of Appeals in Four Roses LLC v First Protective Insurance Co.

Although the provisions of the policy provide coverage against direct physical loss of the dwelling, the plaintiff alleged no loss “as required by the clear and unambiguous terms of the policy”, the decision says, confirming a decision of Manteo, North Carolina, trial court.

Under the policy’s “clear terms,” ​​losses that trigger coverage are those that render the property “unsuitable for living in” or when the civil authority prohibits the use of the property due to direct damage to nearby premises, according to decision.

The complaint does not allege facts that provide coverage for loss of fair retail value of the property or where a civil authority prohibits its use, or where county road closures “returned their property to itself.” uninhabitable”.

Lawyers handling the case did not respond to requests for comment.

Earlier this month, the same court overturned a lower court ruling in favor of policyholders in a COVID-19 business interruption case.

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