Insurance Policy Exclusions Cannot Create Coverage Where None Exists

When a fire destroyed Mariette and Ebert Joachin’s home, they filed a claim with their insurance company. The Joachins, however, were not yet residing in the home, a requirement of their insurance policy. The Joachins filed suit against the insurance agent who sold them the policy. They were honest about not living in the house, and they allege the agent sold them the wrong policy. Despite not living in the home, they also filed suit against the insurance company to recover under the policy. They attempted to use a vacancy exclusion, that the policy would be suspended after 60 days of vacancy, to prove the policy covered the property which had not been vacant 60 days. The Fifth Circuit affirmed the district’s court ruling in favor of the insurance company.