A homeowners insurer appealed from a trial court judgment holding it responsible for payment of hurricane destruction of two outbuildings on the insured's property. The insurer had denied coverage on the basis of a policy exclusion, applicable to "other structures" coverage, of "....farm barns or outbuildings used, intended for use as or formerly used as farm barns or outbuildings." The insured had not read the policy after its issue, except for the declarations page, and was not aware of the exclusion.

It was undisputed that the agent for the insurer had inspected the property after he had persuaded the insured, whose car insurance he had provided, to allow him to arrange her homeowners insurance when it expired in another company. He specifically asked her about the use of the two storage buildings when he observed them and their contents. She told him that no farming had been done after her husband's death, and that the outbuildings were used for personal storage in connection with her residence. (They had been used by her husband for farming purposes.) The agent told her that the buildings would be covered as long as she did not use them for farming.

The insurer claimed that the insured would have understood that she did not have coverage for the outbuildings if she had read her policy. She testified that she did not think it necessary to do so because there was no question about the coverage needed, and she relied on what the agent told her about coverage for the outbuildings.

The appeal court found that the insured had made specific inquiries of the agent as to the pertinent coverage provisions and had justifiably relied on his comments. She had noted coverage for "appurtenant structures" in the policy's declarations page when she received it.

The judgment of the trial court was affirmed in favor of the insured and against the insurer.

(KELLY, Respondent v. SOUTH CAROLINA FARM BUREAU MUTUAL INSURANCE COMPANY Appellant. South Carolina Court of Appeals. No. 2222. September 6, 1994. CCH 1995 Fire and Casualty Cases, Paragraph 5064.)