Insurer Responsible for Total Loss Following Second House Fire

Two fires in less than three months collectively caused a total loss of Craig and Katie Shaw’s house in Minnesota. Following the first fire, the couple’s insurer Farm Bureau Property & Casualty Insurance Co. paid $159,808.52 for the damages. The couple submitted a second claim for a total loss of the property after the second fire. Farm Bureau argued they only owed the difference between the full policy limit ($268,800) and what they had previously paid for the first claim. The district court ruled that according to Minnesota law and the insurance policy, Farm Bureau owed the full policy limit for the second claim. The 8th Circuit Court of Appeals agreed. Read more here.