CLAIMS & THE LAW
BOAT OWNERS TAKE NOTE: EVEN “ALL RISK” INSURED MUST PROVE LOSS WAS FORTUITOUS Expert Analysis & Commentary by Barry Zalma, Esq., CFE By (c) 2020 Barry Zalma
“All-Risk” is not Synonymous with “All Loss.”
T
he District Court granted summary judgment in favor of the insurance company after a yacht sunk in calm waters at its dock because the yacht’s owners, Mr. and Mrs. Inganamort, did not carry their burden of proving that the loss was a matter of chance, “fortuitous,” in the argot of insurance, which is a requirement for coverage under the all-risk insurance policy the Inganamorts had. In Chartis Property Casualty Company v. John Inganamort; Joan Inganamort, No. 19-1903,
United States Court Of Appeals For The Third Circuit (March 24, 2020) the Third Circuit was asked to reverse because the yacht sank because of heavy rain.
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BACKGROUND
insurance company, Chartis Property Casualty Company, with whom they had an all-risk policy. Chartis sent a claims specialist to conduct a preliminary survey of the vessel. The specialist reported three inches of standing water in the starboard forward cabin bilge and multiple potential sources of water ingress, including a hole in the hull the size of a screw. He also found that the electrical breakers were “severely rust-stained and blackened from an electrical failure[,]” and subsequent testing “revealed obvious water intrusion[.]” The final review of the vessel confirmed the claim specialist’s initial findings and also identified that the ship’s battery charger was not working, and without a source of power, the ship’s bilge pumps had ceased functioning.
John and Joan Inganamort left their 65-foot fishing vessel, Three Times A Lady, docked behind their part-time residence in Boca Raton, Florida. In September 2011, when they were at their home in New Jersey, the Inganamorts received the sad news that Three Times A Lady had sunk enough to sustain serious damage. They reported the loss to their Chartis filed a complaint in the
Barry Zalma, Esq., CFE, practiced law in California for more than 43 years as an insurance coverage and claims handling lawyer. He now limits his practice to service as an insurance consultant and expert witness specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He founded Zalma Insurance Consultants in 2001 and serves as its only consultant. 6
The Underwriter’s Insider
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APRIL 2020
