Lane v. Security Mutual Insurance

OPINION OF THE COURT

Smith, J.

The issue on appeal is whether a fire insurance policy that excludes coverage for the intentional fire set by “an insured” violates Insurance Law § 3404 when applied to exclude coverage to an innocent insured. We conclude that it does.

Defendant issued plaintiff a homeowner’s insurance policy that provided coverage against loss by fire. The policy excluded coverage for loss resulting from intentional acts by “an insured,” and defined “an insured” as “you and, if residents of your household, your relatives.” That definition included plaintiff and her six minor…