Court Rules for Insurer But Finds Coverage for 3rd-Party Negligence

LOS ANGELES - A California appellate court ruled that a lower court erred in finding that a homeowner's policy excluded coverage for third-party negligence, but found for the insurer after concluding that the alleged negligence was not the proximate cause of the damage. Chernuchin v. Associated Indemnity Corp., et al., No. B183206 (Calif. Ct. App., 2nd Dist.).

In an unpublished opinion issued on Dec. 29, the 2nd District Court of Appeals found the exclusionary clause relied on by Associated Indemnity Corp. in denying a claim by their insured homeowners did not expressly exclude coverage for negligence by a third party …