Allstate Insurance Company v. Dwight H. Smith, M.D.

BOOCHEVER, Circuit Judge:

In this diversity action, Dwight H. Smith, M.D. (Smith) appeals from the district court’s declaratory judgment, finding that Allstate Insurance Co. (Allstate) was not required to reimburse Smith pursuant to his “all risk” insurance policy for damage to his business equipment and improvements, and for his loss of earnings. We reverse.

BACKGROUND

Smith rented space in a Los Angeles office building for his medical practice. In the fall of 1988, he bought an “all risk” insurance policy from Allstate covering his business property for “loss or damage resulting from direct…