Can the Insurance Company Pacific Specialty deny my claim — fire on my rental property

UPDATED: Sep 7, 2016

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 7, 2016Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can the Insurance Company Pacific Specialty deny my claim — fire on my rental property

I have a property in Hollister rented out for about 2 years.
About 1 month ago, there was a fire and was discovered that the house was use for
planting Marijuana.

Though I have rental insurance coverage on the property but the insurance company
deny my claim.

Asked on September 7, 2016 under Insurance Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You need to check the terms of the policy: insurance policies are contracts, and the insurer must pay out claims when--but only when--the terms of the police say so. So if there is some exception or exclusion in the policy, such that the insurer would not have to pay out if there were criminal activities, then that term of the policy is valid and enforceable, and they could deny the claim.
The could also deny the claim if the information upon which it was issued and/or maintained is false. For example, if your policy was only for your own residential use of the home and not for it being rented out to other people (i.e. if you did not disclose the rental use to the insurer, since the risk profile is different for rental homes vs. homes used as the primary residence by their owners--had you disclosed, they would likely have charged you more, for a different policy), then if they discover it was being rented out, they could deny coverage.
But if you did disclose that it was a rental home and there was no exclusion for illegal activities in the policy, the insurer should have to pay. If they do not, you could sue them for "breach of contract"--for not honoring their contratual obligation to pay this claim under these circumstances.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption