HOUSTON - The First Court of Appeals yesterday affirmed the dismissal of claims in a Winter Storm Uri lawsuit brought against Homeowners of America MGA and Homeowners of America Insurance Company.
Following the storm, Altornett Allen claimed that “the combination of freezing temperatures and statewide power outages caused extensive damage to her property” when “the freeze caused the plumbing supply lines to burst in several areas of her home.”
According to the opinion, based on a water damage endorsement, the insurers paid Allen $10,000 on her claim, even though her estimated replacement costs were more than five times that amount.
Allen sued Insurers for breach of contract, violations of the Unfair Settlement Practices Act and the Texas Prompt Payment of Claims Act under the Insurance Code, breach of the common law duty of good faith and fair dealing, and fraud.
In turn, the insurers filed a combined motion for traditional summary judgment on Allen’s breach-of-contract cause of action and no-evidence summary judgment on her extra-contractual causes of action, the opinion states.
“The trial court granted Insurers’ motion; declared that Allen’s ‘dwelling and personal property losses are direct physical damage caused by sudden and accidental discharge of water from within a plumbing system,’ and were ‘subject to the $10,000 special limit of liability in [the water damage endorsement]’; and rendered judgment that Allen take nothing on her claims,” the opinion states.
Allen appealed arguing that the trial court erred, court records show.
“Under the applicable standard of review, we cannot conclude that the trial court erred by granting Insurers’ motion for no-evidence summary judgment on Allen’s extra-contractual causes of action,” the opinion states. “We affirm the trial court’s judgment.”
Appeals case No. 01-22-00797-CV