Opinion ID: 2054434
Heading Depth: 1
Heading Rank: 3

Heading: Policy Limitations Provision Unambiguous

Text: Section I  Conditions, subsection 8 in the Woodwards' homeowner's insurance policy sets forth the period of limitations provision that is at issue. It reads as follows: Suit Against Us. No action can be brought unless the policy provisions have been complied with and the action is started within one year after the date of loss. [1] The Woodwards contend that the phrase action is started is ambiguous. They submit that an insured party can reasonably construe the language to mean either that the insured must file suit or notify the insurer of a claim within one year. The Superior Court's interpretation and construction of an insurance contract is subject to de novo review. [2] The scope of the coverage obligation is determined by the language in the insurance policy. [3] Where the language is unequivocal, the parties are bound by its clear meaning. [4] If the language is ambiguous, it will be construed most strongly against the insurance company that drafted it. [5] A contract is not rendered ambiguous simply because the parties do not agree upon its proper construction. [6] The language in a policy is ambiguous only if the provision in controversy is reasonably or fairly susceptible of different interpretations or may have two or more different meanings. [7] An ambiguity does not exist when a court can determine the meaning of an insurance contract without any other guide than a knowledge of the simple facts on which, from the nature of language in general, its meaning depends. [8] The Woodwards' homeowner's insurance policy sets forth the separate specific procedures an insured follows to file a claim after incurring a loss and to file a suit against Farm Family. Section I  Conditions, subsection 2 titled Your Duties After Loss requires an insured, after incurring a loss to covered property, to do, inter alia, the following: give prompt notice to the insurer; protect the property, from further damage, make reasonable and necessary repairs to protect the property, and keep an accurate record of repair expenses; prepare an inventory of damaged personal property; and as reasonably required show the damaged property, provide insurer with records and documents and submit to questions under oath. Section I  Conditions, subsection 8 titled Suit Against Us identifies two requirements for an insured to file suit against the insurer: to comply with the policy provisions and to file suit within one year after the date of loss. Subsection 2 and subsection 8 clearly and distinctively differentiate between the process an insured must use to file a claim under the policy and the process the insured must follow to initiate legal action against the insurer. [9] The use of the bolded title Suit Against Us and the specific terms suit and action in subsection 8 are indicative of filing a lawsuit rather than of filing a claim. The Superior Court properly concluded that the language of subsection 8 in Section I  Conditions is unambiguous, [10]