Expected Injuries Reasonably Anticipated by Insured
An investigation produced evidence that the insured deliberately caused a fire and explosion that destroyed insured’s home and other surrounding homes. The insurer filed a declaratory judgment to determine that it did not owe coverage because the fire and explosion were caused by the insured’s intentional acts. State Farm subrogated the rights of its insured and claimed that American Family did owe coverage to the insured because there was no evidence that he intended to cause damage to the surrounding homes. The trial court granted State Farm’s motion and found that American Family did owe the insured coverage under the policy for the claims of State Farm and its insured.
On appeal, the court held that American Family does not have to provide coverage for the damage caused by the fire and explosion. Courts have held that expected injuries are those which should have been reasonably anticipated by the insured. In this instance, the policy provided coverage only for accidents. Since the insured intentionally caused the fire, the occurrence (which is covered under the policy) is excluded because it was not accidental. Therefore, because it could be expected that a fire and explosion would spread to neighboring homes, the damage falls within the exclusion of the policy.
American Family Mut. Ins. Co. v. Guzik, 406 Ill.App.3d 245, 941 N.E.2d 936 (Ill.App. 3 Dist., 2010).
