Insured Admission During Eviction Case Used Against Them in Exclusion of Coverage

K.V.G. Properties leases commercial properties to various tenants. Four years into their lease, one of K.V.G.’s tenants was raided by the U.S. Drug Enforcement Agency on suspicion of illegally growing marijuana. The tenants caused significant damage to the leased warehouse in the process of their marijuana cultivation operation. K.V.G. initiated eviction of the tenants on the grounds they illegally grew marijuana. K.V.G. also filed a claim with its insurance for the damage resulting from the tenant's alterations to the property. The insurance companies denied the claim based on an exclusion of coverage due to property damage from dishonest of criminal acts. K.V.G.’s court records accusing the tenants of dishonest and criminal acts was introduced as evidence to enforce the exclusion. Read the details of the case here: