Farming equipment damaged in a hurricane was not covered by by a general insurance policy when the insured opted out of wind damage coverage.
The Court found that the majority of a dairy farmer’s losses to his milking equipment destroyed as a result of falling debris during Hurricane Juan was excluded from coverage.
Here is the citation: Whidden v. Kings Mutual Insurance Co. [2007] N.S.J. No. 149. Nova Scotia Supreme Court. J.E. Scanlan J. April 4, 2007.
This case was originally digested by Jonathan Meadows and edited by David Pilley.
Here is a link to the decision.
The insured owned a dairy farm that was extensively damaged during Hurricane Juan. A cement silo had collapsed, falling into the milking parlour and completely destroying that part of the building and all equipment contained therein. The insurer denied coverage with respect to the loss of the milking cooler, milking parlour and equipment therein, as the insured had not obtained coverage for wind damage or falling objects.
The Court reviewed evidence with respect to the discussions between the insured and the representatives of the insurer at the time the policy was taken and was satisfied that the insured had considered that there was little risk to the milking equipment from wind damage and had declined such coverage. The insured had obtained coverage for wind damage to the insured’s barns and structures. The Court held that some of the milking equipment, specifically those parts that were embedded in concrete, were sufficiently fixed so as to represent part of the structure of the barn and, therefore, fell within coverage.
In the result, the Court directed the parties to separate pricing and installation costs for the embedded equipment and reach an agreement with respect to that portion of the claim, failing which the Court would hear detailed evidence on the costs of the embedded equipment.
