Eleventh Circuit Defines "Structural Damage" Under An Insurance Policy

Eleventh Circuit defines " structural damage " under an insurance policy to mean more than simply "physical" damage

Although commonly used in insurance policies, the term " structural damage " is typically an undefined term, leaving it to insurers, insureds, and sometimes the courts to define. In Florida, federal district courts had come to different conclusions as to the definition, and recently, the Eleventh Circuit weighed in on the debate. In Hegel v. The First Liberty Ins. Corp., 14-10549 (11th Cir. Feb. 27, 2015), the court was asked whether a district court had erred when it granted summary judgment to the insureds by finding that " structural damage " meant any "damage to the structure." In a ruling that may have broader impact beyond Florida, the Eleventh Circuit ruled that "construing ' structural damage ' to mean simply any 'damage to the structure' in the context of the insurance policy is facially unreasonable." Slip op. at 13.