Hurricane Damage Not Covered for Home Owner Not Named in Policy

    The court granted the insurer’s motion to dismiss because, although there was coverage for the property under the mortgagee’s policy, the home owner was not a named or additional insured under the policy. Cart v. Great Am. Assur. Co., 2023 U.S. Dist. LEXIS 6207 (W.D. La. Jan. 12, 2023). 

    Plaintiffs’ property was damage by Hurricanes Laura and Delta. Because Plaintiff failed to maintain homeowner’s hazard insurance subject to the mortgage, Rushmore Management Services procured a force-placed lender policy on the property through Great American. Plaintiffs filed suit asserting breach contract claims. Great American moved to dismiss.

    The policy stated the policy did not “provide coverage for the interest or equity of the mortgagor. This is creditor placed insurance, protecting our mortgage interest, subject to policy terms and conditions.” The policy identified the “named insured” as the creditor or lending institution servicing the mortgage interest on the property. 

    The lender-placed policy clearly did not name Plaintiffs as insureds, additional insureds, and did not indicate that Plaintiffs were third-party beneficiaries. Therefore, the motion to dismiss was granted.