Hurd v. Republic Insurance

Opinion

COLOGNE, J.

James Hurd, Jr., and Lena Hurd brought an action for declaratory relief and bad faith against Republic Insurance Company for refusal to pay under the terms of their fire insurance policy for loss of personal property destroyed by fire in their building. After a trial by the court, judgment was rendered in favor of Republic holding there was no coverage under the policy. The Hurds appeal.

On October 21, 1975, the Hurds obtained a fire insurance policy covering certain structures located at 932 and 934 South 38th Street in San Diego. On February 19, 1978, while the policy was in full force and effect, the buildings were damaged by fire and Republic paid the claim for loss and damage to the buildings. That sum was accepted by the Hurds and is not in contention in this action. The claim for loss and damage to the contents of the building was not paid however, Republic asserting the policy provided no coverage for that risk. The sole issue on appeal is whether the policy covers loss of or damage to items of personal property constituting the contents of the insured buildings and structures.

The face sheet of the policy indicates the dollar value of the property covered and the annual premiums to be paid as follows:

$36,000 Fire and Lightning $61.00

$ Extended Coverage 17.00

$ Special Form 26.00

$104.00 Total Annual Premium

The policy is entitled “Dwelling Building(s) and Contents—Special Form” and, under the heading “Description of Property and Interests Covered,” purports to cover losses under “Coverage A

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Dwelling,” “Coverage B—Appurtenant Structures,” “Coverage C— Household and Personal Property,” “Coverage D—Rental Value” and “Coverage E—Additional Living Expense.” The policy also states under the title “Perils Insured Against” that “[t]his policy insures under. .. coverage C against direct loss to the property covered by the following perils as Defined and Limited, Except as Otherwise Excluded: [If] (1) Fire or Lightning [11] (2) Windstorm or Hail. ...” There are exclusions provided for in the policy, but none are applicable here.