Port of Olympia v. Lexington Insurance

MEMORANDUM ***

The Port of Olympia (the “Port”) appeals from the district court’s grant of summary judgment in favor of defendant Lexington Insurance Company (“Lexington”), contending that the district court erred in concluding that the Port’s property insurance policy did not provide fire coverage for residential property. We review the grant of summary judgment de novo. Lopez v. Smith, 203 F.3d 1122, 1131 (9th Cir.2000) (en banc). We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

The Port’s primary argument is that the general coverage provision, which insures “all real and personal property,” trumps all other provisions of the policy. That argument, however, is contrary to the express terms of the provision. The provision states: “Except as hereinafter excluded, this policy covers ... [t]he interest of the Insured in all real and personal property.” (Emphasis added.) The “all property” provision thus contemplates that it is subject to exclusions. One of these exclusions is the fire damage provision entitled “Fire, Schedule of Locations.” The Schedule of Locations includes a column entitled “Description of Premises.” Under this heading, the policy states:…