United States District Court, N.D. Indiana, Hammond Division
OPINION AND ORDER
THERESA L. SPRINGMANN CHIEF JUDGE
litigation, the Plaintiffs, Milan and Danielle Kesic, allege
that the Defendant, American Family Mutual Insurance Company,
breached the homeowners' insurance policy covering their
residence by failing to adequately respond when the
Plaintiffs made a claim under the policy. This matter is
before the Court on the Defendant's Partial Motion for
Summary Judgment [ECF No. 57], and all related briefing.
February 19, 2014, Plaintiff Milan Kesic noticed that water
was pouring into his custom-designed office in his residence,
causing damage throughout. That same day, the Plaintiffs
reported the damage due to ice damming and resulting water
leakage to the Defendant.
the Plaintiffs' home was damaged, it was covered by a
homeowners' insurance policy with the Defendant,
specifically policy number 13-DA5523-01
Policy provides that the “Loss Value
Determination” for “Buildings Which Have a
Permanent Foundation and Roof Insured at 100% of Replacement
Cost, ” will be the smallest of:
“(a) the cost to replace the damaged building with like
construction for similar use on the same premises;
(b) the amount actually and necessarily spent for repair of
the damaged portion or replacement of the damaged building;
(c) 120% of the limit applying to the
(Policy, Ex. F to Def.'s Mot. for Summ. J., Conditions -
Section I, Gold Star Homeowners Amendatory Endorsement, p.
29, ECF No. 57-1).
Policy also provides for appraisal, by stating:
Appraisal. If you and
we fail to agree on the amount of loss,
either may demand an appraisal of the loss.
In this event, each party will choose a competent and
disinterested appraiser within 20 days after receiving a
written request from the other. The two appraisers will
choose a competent and disinterested umpire. If they cannot
agree upon an umpire within 15 days, you or
we may request that the choice be made by a
judge of a court of record in the state where the
insured premises is located. The appraisers
will separately set the amount of loss. If the appraisers
submit a written report of an agreement to
us, the amount agreed upon will be the
amount of loss. If they fail to agree within a reasonable
time, they will submit their differences to the umpire.
Written agreement signed by any two of these three will set
the amount of the loss. Each appraiser will be paid by the
party selecting that appraiser. Other expenses of the
appraisal and the compensation of the umpire will be paid
equally by you and us.
(Policy, Ex. F to Def.'s Mot. for Summ. J.,
“Appraisal condition, ” Conditions - Section I,
Indiana Amendatory Homeowners ...