7th Circ. Says Policy Term Too Vague To Deny Fire Coverage

Law360, Los Angeles (October 23, 2013, 6:29 PM EDT) -- The Seventh Circuit held that State Auto Property and Casualty Insurance Co.'s insurance policy term “residence premises” is ambiguous and should be liberally construed in favor of coverage, reversing on Wednesday a district court’s summary judgment for the insurer.

Plaintiffs Norman and Glenna Schuchman had asserted a claim against the homeowner’s policy State Auto had issued them, but after a lengthy investigation, State Auto denied the Schuchmans’ claim on the basis that the plaintiffs weren’t residing on the “residence premises,” as that term is defined by...
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