Interest Groups

In an Unpublished Decision, Court of Appeals Enforces Property Policy Language Limiting Insurer Coverage Obligation to Actual Cash Value of Destroyed Home - Insurance Coverage

Insurance Coverage

Posted on: Jun 22, 2017

By Michael R. Giordano and Richard K. Shoultz, both of Lewis Wagner LLP

The case of Garba v. West Bend Mut. Ins. Co., 2017 WL 2119170 (Ind. Ct. App. 2017) addresses a contention that is often raised by policyholders concerning the amount of coverage that they may be entitled to recover for destroyed homes when they elect not to rebuild at the damaged location.

The insured's home was seriously damaged by fire and a claim was submitted to West Bend. The insured's policy provided a policy limit of $360,500.00. When the parties could not agree upon the amount of the loss, they submitted the matter to appraisal. An appraisal award was entered for $360,190.07, slightly less than the policy limits. However, the insured did not elect to rebuild the home at the existing location, but instead purchased another home in Arizona.

Read more here.

If you would like to submit content or write an article for the Insurance Coverage Section page, please email Kara Sikorski at


Indianapolis Bar Association (IndyBar) est. 1878 | 4,536 Members (as of 2.11.21)