Debris Removal Policy Language Was Clear

Commercial Property	No Ambiguity
Policy Terms and Conditions	Obligation Fulfilled

Strowig Properties, Inc. (Strowig) filed a lawsuit against its Commercial Property insurer, American States Insurance Company (American States), over a loss to its property, Plaza Theater. The theater was destroyed by a powerful windstorm. In addition to the building's loss, Strowig faced $90,000 in debris removal expenses.

The property was covered by a commercial policy with a building limit of $139,900 and an endorsement limiting debris removal coverage to $25,000. A dispute arose between the two parties regarding the payout for the total loss.

Strowig received the full building limit of $139,900 and the $25,000 debris removal limit. However, the insured filed an additional debris removal claim for nearly $35,000 based on their interpretation of the policy coverage. American States denied this additional claim because they believed they had fulfilled their total obligation. Both parties then filed for summary judgments.

The lower court granted American States request and denied Strowig's. Strowig appealed the decision.

The higher court considered the policy language, as modified by the debris removal endorsement, in light of Strowig's contention. The insured restated its argument that the wording was ambiguous and, in addition to the separate $25,000 in debris removal coverage, could also be read as obligating the insured to an additional 25% of the policy limit ($139,900 x .25 = $34,975).

After reviewing the applicable policy language, the higher court found it clearly written. In the court's opinion, American States fulfilled its coverage obligation, and the higher court upheld the lower court's decision in favor of the insurer.

Strowig Properties, Inc., Appellant, v. American States Insurance Company, Appellee. Kansas Court of Appeals. No. 88,597. October 2, 2003. Affirmed CCH 2004 Personal and Commercial Liability Cases 48001