When it comes to asset location, a ‘schedule of location’ is a list of property locations that states where insured assets are located. The house and possibly an additional structure would be listed on homeowner’s policy. The locations insured under a business policy where a business loss can occur will be listed in the case of a business policy.
The denial of what would otherwise be covered by the insurance policy is a result of failing to include all such possible locations. Your Insurance Attorney is a top insurance lawyer in the Miami Dade County area. If you are looking for counsel regarding asset location, call us today.
Why The Schedule of Locations is Important
So why exactly is listing the exact locations for the schedule of locations so important? Let’s go into an example of how it can impact your insurance claim. Recently, the Sixth Circuit Court of Appeals upheld a federal trial court ruling in Ohio which dismissed the breach of contract and bad faith against its insurance company by a policyholder.
In December, a thief broke into the Florida warehouse of Ohio cellphone distributor Berrylane Trading Inc, and ran away with approximately $1.7 million worth of iPhones. Due to the fact that this Florida warehouse was not listed on the schedule of locations covered by the property insurance policy, the case was dismissed and Berrylane could not be covered under their insurance policy.
This is because Berrylane’s insurance policy purchased from Transportation Insurance Company had only listed Berrylane’s Bedford, Ohio headquarters as its only location that needed to be insured.
The Schedule of Locations is Necessary for Asset Location
Your Insurance Attorney advises in continuously updating your schedule of locations, as Berrylane had extended their coverage for any property that the company “newly acquired” during the policy period of April 2015 to April 2016, but the least for the warehouse had been signed several months before they extended this policy.
Berrylane did not physically begin using the warehouse as part of their operations until after the policy inception date, in the summer of 2015, and thus argued the extra coverage purchased for the period should apply to the warehouse.
However, their case was dismissed as the court noted that the lease was still signed and Berrylane technically “acquired” the warehouse prior to the inception date of the policy, making the warehouse and any goods within it not property newly acquired during the policy period and dissolving responsibility of the insurance company from having to insure it.
Your Insurance Attorney
The schedule of locations is a key component of asset location and protecting your property. It should be part of the declaration page, and you should continuously update the policy with newly acquired locations, as well as making sure that building values and business interruption exposure listed on your policy is updated and current.
Your Insurance Attorney is a top insurance lawyer in Miami Dade County. If you’re looking for an insurance attorney in the area, call us today for a free initial consultation!