To From Re Facts
[Your name]
Supervising Attorney
We represent Emilio Espinosa. On May 2nd of this year, Mr. Espinosa purchased a home from First City Bank. On that date he purchased homeowner insurance from Capital Insurance Company. The Bank had fore¬closed on the home on March 15, forty-eight days prior to Mr. Espinosa's purchase. Mr. Espinosa did not plan to move into the home until July 1st. On June 5, thirty-four days after Mr. Espinosa purchased the home and signed the homeowner insurance contract with Capital Insurance, copper thieves broke into the home, tore into the walls and ceiling, and stole the copper water pipes. There was extensive damage to the walls and ceiling and water dam¬age to the carpet. The estimated repair costs were $19,000.
The house was vacant from March 15, the date of the foreclosure until the date of the damage; a period of eighty-two days. Paragraph 20 of the insurance contract Mr. Espinosa signed with Capital Insurance excludes from coverage loss caused by "theft or attempted theft, damage by burglars,... if the described location: is held as a residence and has not been occupied as a residence for more than 60 consecutive days immediately before the loss."
Capital Insurance is denying coverage based upon this section of the contract.
Please check the statutory and case law to determine whether Capital Insurance can deny coverage based upon this section.
Statutory Law: For the purposes of this assignment, there is no statutory law that applies.
Case Law: Pappas Enterprises, Inc. v. Commerce & In¬dustry Insurance Co., 422 Mass. 80, 661 N.E.2d 81 (1996) (see Appendix A).