Misrepresentation at time of Application is Defense to Multiple Claims

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Amy Powell appealed the district court’s order granting summary judgment in favor of USAA Casualty Insurance Co., on Powell’s claims for breach of insurance contract and for violations of the Insurance Code. In Amy Powell v. USAA Casualty Insurance Co., NO. 01-19-00308-CV, Court of Appeals For The First District of Texas (April 15, 2021) a Texas Court of Appeal was asked to provide her coverage for multiple losses.


Insurance is an indemnity contract. It is not a means of fixing up a deteriorated fixer upper house. Most of the damage done to Powell’s house – that was vacant for two years before she bought it – and was in a deteriorated condition when she bought it, obtained help from FEMA after a flood, did little or no repair and then attempted to get more benefits from USAA to repair pre-existing damage, damages caused by excluded causes, and misrepresented the condition of the property at the time of the application for insurance. It is not nice, and defeats a claim, when you lie to get insurance.