Appeals Panel: Coverage Denial Under Construction Exception Was In Bad Faith
FRESNO, Calif. - In a divided opinion, a California appeals court on Dec. 7 found that an insurer’s interpretation of a “construction exception” to a policy’s “vacancy exclusion” as not applying to renovations was unreasonable and, therefore, that denial of coverage under the exception was in bad faith (TRB Investments Inc., et al. v. Fireman’s Fund Insurance Co., No. F055111, Calif. App., 5th Dist.; 2009 Cal. App. Unpub. LEXIS 9637).
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