In a February 14, 2011 decision by Justice Sherwood the Court granted summary judgment to an insurance carrier dismissing claims brought by a person injured at a beach club cabana rented by the insurance carrier’s customer.
The plaintiff was injured at the cabana in September 2005. The plaintiff initially brought an action against the renter of the cabana. The insurer did not provide a defense and disclaimed coverage because, among other things, it did not insure the cabana. The renter defaulted and the injured party obtained a default judgment against the renter.
The injured party then commenced an action against the insurance carrier predicated on the insurance carrier’s allegedly improper denial of coverage. The Court found that the cabana which had been rented for over 20 years was not covered by the homeowner’s insurance policy even though the policy provided coverage for a “Premises Occasionally Rented to an Insured.”
Raner v. Security Mutual Insurance Co., Sup Ct, New York County, February 14, 2011, Sherwood, P.O., Index No. 601409/09