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• Council eyes ways around potential $3 million shortfall

• Family, friends mourn death of ex-Tokay High student

• Delatore sentenced to 95-to-life

• Parents concerned with safety after child's death from Ferris wheel at San Joaquin Fair

• Fast, perilous currents keep Mokelumne River, recreation areas closed

• Lodi Council to take up WID water issue again

• Regional Roundup

• Steve Jarrett to make a run for Lodi City Council

• S.J. Bank robbed by man claiming to be armed with plastic explosives

• Mother of slain soldier helps other troubled soldiers

November 20th, 2009

• Acampo woman killed

• Salvation Army Kettle Kickoff

• Advocacy groups sue East Bay Municipal Utility District over Pardee expansion

• Regional Roundup

• Galt plans to help residents with energy-efficient projects

• Stable southeast of Lodi approved

• One year after a heart attack, Lodi's Judy Mims thanks rescuers

• National Guard troops return home in time for the holidays

• Real estate market gets on more solid ground

November 19th, 2009

• Lodi Unified School District board votes to cancel summer school for 2010

• Water surges in Mokelumne River yield more salmon

• Lodi City Council will consider redevelopment next June

• Lodi City Council plans to cap number of taco trucks at 22

• Corrections

• Chase ends in crash

• Operation: Christmas

• Logbook

• Suspect arrested after hiding in fridge

• Galt Joint Union High School Distric hires new superintendent

• Sales tax hike yields dividends: 5 new officers join Galt Police

November 18th, 2009

• Regional Roundup

• Paranormal group conducts second investigation of building

• Congress allocates money for local water projects

• Lodi man finds wife's ashes during police display of stolen property

• Galt City Council rejects study on rent stabilization

• Sarah Palin's book hits the shelves: Locals react

November 17th, 2009

• Clarification

• Lodi Budget and Finance Committee to look into ways to save money on employee benefits

• Regional Roundup

• Decision on summer school expected at tonight's Lodi Unified School District meeting

• Clements gets free water rescue boat

• Redevelopment to be discussed by Lodi City Council again

• Court reinstates death penalty for killer of Lodi grad

• Paying tribute to a Lodian

November 16th, 2009

• Correction

• Public Meetings

• Regional Roundup

• Three members of Lodi-area family fall ill after eating poisonous mushrooms they reportedly found at Lodi Lake

• Sierra Adventure store to close after four years in Downtown Lodi

• Lodi's First Sip event showcases area wineries' latest vintages

• City Council 'triple-dog dared' to ditch cars, use Lodi buses

November 14th, 2009

• Galt school district narrows superintendent search to one

• Regional Roundup

• A first look at 2009 vintages at Lodi's First Sip wine-tasting event

• Watchful neighbor in Lodi helped bust suspected burglars

• Despite budget cuts, some Lodi Unified School District salaries continue to rise

• Despite an increase in homeless students, school districts look to bolster enrollment, raise revenue

• New Galt city manager juggles job, family

November 13th, 2009

• What to expect with new homebuyer tax credit

• Lodi Muslim: Local mosque not involved

• Regional Roundup

• Mayor Larry Hansen points out Lodi's economic progress

• First phase of Lockeford park by 2011?

• Lodi veteran recounts close calls in Vietnam

• Burglary suspects are under arrest

The following stories have received the most reader comments during the last 7 days.

• The country's mess is our fault (157)
• Obama is not a moderate (130)
• Sarah Palin's book hits the shelves: Locals react (67)
• Despite budget cuts, some Lodi Unified School District salaries continue to rise (58)
• Lodi City Council plans to cap number of taco trucks at 22 (48)
• The haves should help the have-nots (30)
• Public health care is a Christian option (28)
• Lodi Flames slim playoff chances vanish in setback to Tracy Bulldogs (25)
• Tokay in, traveling to unbeaten No. 3 Grant for football playoffs (25)
• Nightmares about America's future (23)

ADVERTISEMENT

State Farm's alleged mishandling of insurance claims invites lawsuit

Why was coverage denied for mold, water damage?

Magda Benavides purchased her ground-floor condominium in 1994. Seven years later, mold was found in the exterior walls adjacent to her unit. Benavides' physician advised her to move out.

She submitted a claim to her condominium owner's insurance company, State Farm, which hired a civil engineer to investigate. State Farm later denied the claim because it was an excluded loss, which was not caused by an insured peril. The insurer pointed to its policy exclusion for mold.

Purchase Bob Bruss reports online.

Benavides also filed a claim based on water intrusion damage from an upstairs unit. Water leaked into Benavides' kitchen and living room during remodeling of the second-floor condo, which was promptly repaired by the neighbor.

The insured condo owner brought this lawsuit against State Farm for alleged negligent investigation of her insurance policy claims.

If you were the judge would you order State Farm to pay damages to Benavides for negligent investigation of her policy claims?

The judge said no!

The evidence showed the accidental water intrusion damage during remodeling of the upstairs condo unit was promptly repaired, the judge began. Therefore, neither State Farm nor the upstairs neighbor is liable to Benavides, he ruled.

As for Benavides' mold damage claim, he continued, State Farm points to its policy exclusion for damage caused by mold, he explained. The evidence showed State Farm promptly hired a civil engineer to investigate the mold and, based on that report, denied policy coverage as an excluded cause of damage, the judge emphasized.

When there is no insurance policy coverage for the mold damage, there can be no liability by the insurer for negligent investigation of a policy claim, the judge ruled. Therefore, State Farm has no liability to the insured, Magda Benavides, he concluded.

Based on the 2006 California Court of Appeals decision in Benavides v. State Farm, 39 Cal.Rptr.3d 650.

(For more information on Bob Bruss publications, visit his
Real Estate Center).

***

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