Opinion ID: 2054434
Heading Depth: 1
Heading Rank: 6

Heading: Woodwards' Homeowner's Insurance Contract

Text: This insurance proceeding illustrates the need for precision in using terms such as policy, coverage and contract. It also illustrates the importance of distinguishing between the statutory definitions and the ordinary definitions of these and other terms. In this appeal, the semantic differences in the origin and use of certain defined words or phrases are outcome-determinative. The Woodwards purchased a homeowner's insurance policy from Farm Family. In that context, the word insurance policy is used in accordance with its ordinary meaning: contract of insurance. [24] Therefore, we will refer to the Woodwards' entire agreement with Farm Family as the homeowner's insurance contract. [25] In this case, we must decide whether the Woodwards had a casualty insurance policy as the terms casualty insurance and policy are defined by statute. If so, the related issue to be decided is whether the Woodwards made a claim with Farm Family pursuant to that casualty insurance policy. If the Woodwards made a claim pursuant to a casualty insurance policy, Farm Family was required to give the Woodwards the notice that is mandated by title 18, section 3914 of the Delaware Code. We have concluded that a portion of the Woodwards' homeowner's insurance contract did constitute a casualty insurance policy  as defined by statute  but that the Woodwards did not make a claim pursuant to that policy. In order to completely define the phrase casualty insurance policy, the definition of casualty insurance in title 18, section 906 of the Delaware Code must be combined with the definition of policy in title 18, section 2702 of the Delaware Code. Section 906 defines casualty insurance by enumerating specific types of coverage provisions. Section 2702 defines a policy to mean a written contract of or written agreement for or effecting insurance, by whatever name called, and includes all clauses, riders, endorsements and papers which are a part thereof. For purposes of deciding this case, the fact that all clauses meet the statutory definition of policy is controlling. Title 18, chapter 9 of the Delaware Code defines the different kinds of insurance coverage that an insurance contract can provide. While section 906 defines casualty insurance, title 18, section 904 of the Delaware Code separately defines property insurance as follows: Property insurance is insurance on real or personal property of every kind and of every interest therein against loss or damage from any and all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for any such loss or damage. Property insurance does not include title insurance, as defined in § 908 of this chapter. Based upon this statutory definition in section 904, the Woodwards acknowledge that the Superior Court properly concluded that their homeowner's insurance contract is primarily a property insurance policy. Nevertheless, the Woodwards contend that their homeowner's insurance contract also meets the definition of casualty insurance in section 906(a)(5), which defines casualty insurance to include a  Personal property floater.  Insurance upon personal effects against loss or damage from any cause. The record reflects that the homeowner's insurance contract issued by Farm Family to the Woodwards included coverage for not only the dwelling and other structures, but also personal property. Under Coverage C  Personal Property, the Woodwards' insurance contract states: We cover personal property owned or used by an insured while it is anywhere in the world. According to the Woodwards, the existence of this Personal Property Floater in their homeowner's insurance contract makes their entire homeowner's insurance contract a casualty insurance policy as defined by section 906(a)(5) and triggers the notice requirements of section 3914.