Insurer wins ruling over cover for church damaged in hailstorm

A federal appeals court on Wednesday affirmed a lower court ruling in an insurer’s favor in a dispute over coverage for a storm-damaged church.

Frontline Fellowship Inc., which operates a church in Edmond, Oklahoma, filed a claim under its commercial property insurance policy with Wayne, Indiana-based Brotherhood Mutual Insurance Co. after the church was damaged in a hailstorm, according to the ruling by the 10th U.S. Circuit Court of Appeals in Denver in Frontline Fellowship Inc. v. Brotherhood Mutual Insurance Co.

After Brotherhood denied coverage, Frontline sued the insurer in U.S. District Court in Oklahoma City, which ruled in the insurer’s favor. The ruling was affirmed by a three-judge appeals court panel. 

The panel said the district court concluded that to recover under the policy, Frontline had to show either that it repaired the damaged property, and the cost of doing so exceeded the policy’s deductible, or that the damaged property’s actual cash value at the time of the loss exceeded the deductible.

It was undisputed that the property had not been repaired or replaced, the ruling said.

As to actual cash value, Frontline has not shown that the district court erred in holding “no reasonable juror” could conclude that it exceeded the policy’s deductible.

Attorneys in the case had no comment or did not respond to a request for comment.

In April, federal appeals court reversed a lower court and held that a Florida church is entitled to coverage for roof damage incurred in two hurricanes because of the policy language, despite the parties’ apparent intent.