Argument for insurance company

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Reference no: EM131843929

YOU BE THE JUDGE WRITING PROBLEM Chip bought an insurance policyon his house from Insurance Co. The policy covered damage from fire but explicitlyexcluded coverage for harm caused " by or through an earthquake. " When anearthquake struck, Chip ' s house suffered no fire damage, but the earthquake caused abuilding some blocks away to catch on fire.

That fire ultimately spread to Chip ' shouse, burning it down. Is Insurance Co. liable to Chip? Argument for Insurance Co.: The policy could not have been clearer or more explicit. If there had been noearthquake, Chip ' s house would still be standing. The policy does not cover his loss.

Argument for Chip: His house was not damaged by an earthquake; it burned down.The policy covered fire damage. If a contract is ambiguous, it must be interpretedagainst the drafter of the contract.

Reference no: EM131843929

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