The Knowles owned rental property. Fidelity Co-operative Bank (Fidelity) owned the mortgage on the property. Nova Casualty Company (Nova) insured the property. A 2008 tropical storm caused substantial damage to the building interior. The Town closed the building. The Knowles submitted a claim for reimbursement for the water damage with Nova, which denied the claim. Due to Nova’s denial of coverage the Knowles could not afford to repairs the building. The building remained vacant and was vandalized. Nova also refused to cover the vandalism claim. The Knowles defaulted on their mortgage due to the lack of rent. Rather than foreclosing In 2010, Fidelity, individually and as assignee of the Knowles, pursued the insurance claim against Nova for the property losses and the lost business income under the all-risk insurance policy. The trial court granted summary judgment for the insurer. The Appeals Court reversed and ordered the parties to trial on the damage claims.
The full decision is here.
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