Rankin v. USAA Casualty Insurance Co.

ORDER ON PENDING CROSS-MOTIONS FOR SUMMARY JUDGMENT

William J. Martinez, United States District Judge

This insurance dispute raises a surprisingly contentious question: If a homeowner’s policy insures against a particular event (here, water leakage) and that event causes an aesthetic change in the home with no discernible effect on the home’s value, is the aesthetic change nonetheless a “loss” entitling the homeowners to compensation? Plaintiffs Celia and R. Todd Rankin (the “Rankins”) argue that the answer is yes, while the issuer of their homeowner’s policy, Defendant USAA Casualty Insurance…