A fire damaged the Mead's condominium on December 4, 2012. Unfortunately, their condominium unit-owners policy renewed on September 8, 2012, but they had not paid the renewal premium so on October 28, 2012, the policy had been cancelled by Travelers for nonpayment. The Mead's filed a claim with Travelers and Travelers sent out an adjuster who denied coverage due to the cancellation.
The Mead's argued that Traveler's actions estopped it from denying coverage. Their first argument was that Travelers had cancelled without sending a five-day notice of cancellation. However, Travelers had mailed out the cancellation due to nonpayment notice. In response to it twice the Meads had attempted to make late payments over the phone, but their bank had refused to process the payment. The Meads also argued that Travelers sending out an adjuster prevented them from denying coverage.
Click here to see if the courts agreed that coverage was in effect on December 4.
