Whitmer v. Graphic Arts Mutual Insurance

To answer the question, we construe a fire insurance policy provision that fixes the amount of a policyholder’s recovery after destruction of the insured property. We quote from the pertinent facts as set forth in the Fourth Circuit’s order of certification:

Whitmer purchased a homeowners policy from Graphic which included a provision for replacement cost for the real and personal property insured. The premium was computed on the basis of such coverage. On March 21, 1988, Whitmer’s home was totally destroyed by fire. Graphic refused to make any payment under the policy to Whitmer, who had not…