480_C001

LOCATION CHANGE HELD NOT TO PRECLUDE COVERAGE

A mobile homeowners policy contained the following pertinent language: "We cover: (1) the mobile home on the residence premises listed in this policy used mainly as private residence." The term "residence premises" was defined in the policy as "the mobile home, other structures and grounds listed in this policy." At the time the policy was purchase, the home was located inside a mobile home park, within 50 feet of a fire hydrant in a specified county. The location was described in the policy.

Without notice to the insurer, the insured moved the home to a two-acre tract in another county one mile from the nearest fire hydrant. The home and its contents were destroyed by fire three months later. The insurer denied the insured's claim because he had not given notice of the move from the original location listed in the policy. The insured sued the insurer to recover his losses and expenses, alleging that there was no policy provision requiring notice of change of location as a condition of coverage. The insured appealed summary judgment in favor of the insurance company.

The appeal court found ambiguity in the reading together of the definition of "residence premises" and the coverage provision quoted above. It concluded, from the language, that it was reasonable for a policyholder to believe there was coverage for the mobile home without reference to location.

The insurer based its disclaimer of coverage, in part, on the following statement in declarations page of the policy: "The residence premises covered by this policy is located at the above mailing address unless otherwise shown." The court said this could be seen as pertaining only to identifying the home and that it did not make coverage conditional on location.

The judgment of the trial court was reversed in favor of the insured and against the insurance company.

(CANTRELL, Plaintiff-Appellant v. NATIONWIDE MUTUAL FIRE INSURANCE COMPANY, Defendant-Appellee. Georgia Court of Appeals. No. A89A1090. October 4, 1989. CCH 1989-90 Fire and Casualty Cases, Paragraph 2223.)