The Insured is Obligated to Prove Damage from a Peril Insured Against to Get Indemnity

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In Jensen Shirley; Karen Shirley v. Allstate Insurance Company, No. 19-56066, United States Court Of Appeals For The Ninth Circuit (October 9, 2020) the Ninth Circuit was asked to find coverage and prove that they were entitled to bad faith damages. Jensen and Karen Shirley (collectively, the “Shirleys”) appealed from the district court’s summary judgment in favor of Allstate Insurance Co. (“Allstate”) on their California state law claims for breach of contract and insurance bad faith.


Since there was no evidence of physical damage to the property, the risk of loss of which, was insured by Allstate, there could be no obligation or ability to pay a claim since it is impossible to put a monetary value of no damages. Failure to prove a loss defeated the Shirleys’ breach of contract and bad faith claims.