PALACIN
Palacin v. All State Insurance
Opinion
Opinion
Haller, J.
Alicia Palacin purchased a condominium owner’s insurance policy from Allstate Insurance Company (Allstate) covering real property items “which are your insurance responsibility as expressed or implied under the governing rules of the condominium.” When Palacin tendered a claim to Allstate for water damage to her walls and floors, Allstate denied the claim, stating that the damaged items were not Palacin’s “insurance responsibility” under the homeowners association rules.
Palacin brought a breach of contract, fraud, and bad faith action against Allstate. Allstate successfully demurred to the complaint on the basis that there was no coverage as a matter of law. Palacin appeals. We conclude the court properly sustained the demurrer, but erred in failing to grant Palacin leave to amend to allege: (1) the claim is not covered by the homeowners association’s insurance policy and therefore the property damage was her implied insurance responsibility triggering policy coverage; and/or (2) Palacin’s real property that was damaged constituted covered “improvements” within the meaning of the insurance policy.