Wells Fargo Home Mortgage V. Cumberland Mutual Fire Insurance Company, — N.J. Super. – (App Div. 2011)
Practice Areas: First Party, Insurance Coverage and Bad Faith
Our firm represented Cumberland Fire Insurance Company in this case where the Appellate Division held that Wells Fargo, the mortgagee, was entitled to coverage under a homeowner’s policy where the insured, Cunningham, demolished and then abandoned the dwelling on the property.
The Appellate Division rejected our argument that Wells Fargo was not entitled to coverage under the policy because it failed to inform Cumberland of the increased hazard resulting from the demolition of the house. The Court further rejected our argument that no coverage was available due to the insured’s intentional act of demolishing the dwelling , holding that the mortgagee was entitled to coverage even if the insured was barred from recovery.