Free v. Republic Insurance

Opinion

GATES, Acting P. J.

In the instant appeal plaintiff Donald R. Free challenges the orders of dismissal entered after the trial court sustained without leave to amend the demurrers of defendants Republic Insurance Company and Wilkinson Insurance Agency to plaintiff’s second amended complaint.

Because this appeal arises from a judgment entered after the sustaining of a demurrer, we must, under established principles, assume the truth of all properly pleaded material allegations of appellant’s second amended complaint in evaluating the propriety of the trial court’s action.

(Tameny

v.

Atlantic Richfield Co.

(1980) 27 Cal.3d 167, 170 [164 Cal.Rptr. 839 [610 P.2d 1330, 9 A.L.R.4th 314];

Jones

v.

Grewe

(1987) 189 Cal.App.3d 950, 954 [234 Cal.Rptr. 717].)

[1729]

According to the complaint, defendant Republic Insurance Company issued plaintiff a homeowners policy in 1979. That year and every succeeding year until April 1989, appellant contacted Green Leaf Insurance Agency and All Valley Insurance Agency through their representatives acting on behalf of defendant Republic Insurance Company to inquire whether the coverage limits of his policy were adequate to rebuild his home. On each occasion he was informed they were.

The complaint also alleges that beginning in April 1989, defendant Wilkinson Insurance Agency took over plaintiff’s account from Green Leaf Insurance Agency and All Valley Insurance Agency. Sometime thereafter, but prior to October 26, 1989, when appellant’s residence was completely destroyed by fire, representatives of the Wilkinson Insurance Agency, acting in their capacity as agents of defendant Republic Insurance Company, informed appellant in response to his query that the coverage limits on the property were adequate to reconstruct the house. Appellant later discovered, however, that property values had substantially increased in the 10 years since his original policy issued and that the $141,000 policy limit was insufficient to replace his home.