Interpreting Dwelling Clauses in Homeowners' Policies
Kelsey Shannon and Martin Lynn write: What does it take to qualify one's home as one's "residence?" The case law unfortunately does not provide much certainty. There are a couple well-established principles. First, "[t]he standard for determining residence requires something more than temporary or physical presence and requires at least some degree of permanence and retention to remain." And second, a person can have more than one "residence" for purpose of insurance coverage. But that's about it.
October 14, 2017 at 05:01 PM
17 minute read
In courts across New York, homeowners find themselves litigating the most intimate details of their lives—where they sleep, who they live with, how they cook their dinner—all in the name of insurance.
More specifically, in the name of the “residence” or “dwelling” provision in their homeowners' policies, which insurance companies increasingly contend limit the homes eligible for coverage to those homes in which the insured “resides.” In this article, we examine how courts have addressed this almost existential question. We further argue that insurers' unwillingness to settle on a consistent—or even articulable—definition of the term has been a double-edged sword, at once providing for disclaimers over a broad swath of behavior but also planting the seeds of defeat.
Your homeowners insurance contains a provision that says something very close to this: Property loss will be covered only for damage to your “dwelling,” defined as “a one family building structure, identified as the insured property on the Policy Declarations, where you reside and which is typically used as a private residence.” Usually the dispute will come down to that “where you reside” requirement. For most people most of the time, it's very clear what this provision means: it's the house we live in seven days a week. But life's strange paths takes people in unpredictable directions, and few of us imagine our insurance policy has much to say about where we spend our evenings or our mornings.
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