To Obtain Full Replacement Cost Insured Must Repair or Replace Within Two Years of Loss

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Railroad Avenue Properties, LLC (“Railroad Avenue”) sued Acadia Insurance Company (“Acadia”) for breach of contract. The dispute concerned the amount of insurance coverage available under a commercial property insurance policy for damages sustained by a fire at 11 Railroad Avenue. In Railroad Avenue Properties, LLC v. Acadia Insurance Company, C. A. No. 19-40155-TSH, United States District Court, D. Massachusetts (September 29, 2021) the court ruled on Acadia’s Motion for Summary Judgment.

ZALMA OPINION

The District Court applied the clear and unambiguous language of the policy. The insured failed to repair. In fact all they did in the two years after the loss was demolish the fire damaged structure. They asked for an extension of the deadline only two weeks before it expired which request was denied and the condition precedent applied. Insurance is a contract and if its conditions are clear and unambiguous they must be applied if not excused.