Damage From Wind Not Covered In Policy Excluding Windstorm

    The court found there was no coverage for wind damage under a policy that expressly stated it did not cover windstorm. Chesnutt v. Southern Pilot Ins. Co., 2023 U.S. Dist. LEXIS 66900 (E.D. N.C. April 17, 2023). 

    The Chesnutts had a policy issued by Southern Pilot that stated in bold letters that there was no coverage for windstorm. The Chesnutts therefore added a co-insurance policy provided by the North Carolina Joint Underwriters Association (NCJUA) that covered wind damage. In 2018, the Chesnutts’ property was damaged by Hurricane Florence. The Chesnutts made claims under both policies. Inspectors concluded that the damage was caused by the storm’s high winds. The NCJUA policy paid the Chesnutts $400,000. Southern Pilot denied coverage.

    The Chestnutts sued, alleging breach of contract and bad faith. Southern Pilot moved for summary judgment. The court found that the Chesnutts failed to create a genuine issue about whether Southern Pilot breached the contract or acted in bad faith. The Chesnutts did nothing to bring themselves within the policy. They failed to identify which part of the policy Southern Pilot allegedly breached. Instead, they argued the issues of whether or not there was coverage for any of the losses were matters of fact for the jury to determine. Without reference, however, to a specific provision of the policy that was allegedly breached, the Chesnutts did not create a genuine dispute about whether Sourthern Pilot actually breached the agreement. Moreover, Southern Pilot demonstrated that the policy excluded the Chesnutts’ claim.The policy did not cover property damaged caused by wind storms and the property was damaged by high winds.

    The bad faith claim also failed. The Chesnutts could not show that Southern Pilot refused to recognise a valid claim.