For purposes of an exception to a vacancy exclusion, "renovation" is an issue of fact where rental property repairs continue over a period of years and additional damage from theft occurs in the process.

The insured's rental property suffered water damage when water pipes burst at an unoccupied multi-unit dwelling. The insured made repairs to the water lines and drywall; however, before finding new tenants, he undertook renovations over the following three years. Prior to completing the renovations, thieves broke into the property and stripped its copper plumbing and fixtures. His insurance claim was denied because the property had been vacant for more than 60 consecutive days. The insured sought declaratory judgment because buildings under construction or renovation are not considered vacant under his policy. Following discovery, both parties filed cross-motions for summary judgment. The insurer's motion was granted because the insured did not complete the initial water repairs "as quickly as possible." The appellate court reversed, finding that repairing property "as quickly as possible" was not a condition precedent to coverage and the phrase was not defined in the policy. There was also a question as to whether the building was undergoing renovation or was occupied at the time of the loss. As such, the case was remanded for further proceedings.

Case Law Alerts, 3rd Quarter 2013