For years, creative noninsured entities and individuals have concocted innovative ways to recover payment under homeowners policies to which they are not a party. Many times, the noninsureds have relied on obtaining assignment of benefits (AOBs) from the insureds to then recover payment. But, as a recent case from the U.S. District Court for the Eastern District of Pennsylvania shows us, noninsureds may pursue other options if that avenue is closed to them.

The case, Williams v. Nationwide Insurance, 2023 WL 2632212 (E.D. Pa. Mar. 24, 2023), stems from a June 18, 2020, fire which destroyed the home of Mark and Elizabeth Ann Ruch, who purchased a homeowners policy with Nationwide Insurance. The Ruchs filed a claim with Nationwide, which ultimately denied their claim for, among other reasons, their failure to comply with the policy’s duties after loss conditions.