- -4 Claimed Casualty Loss Deductions A. Rain and Wind Damage to Home and Personal Property in 1988 In February 1988, petitioners contracted for the construction of an addition to their home. Because the contractors informed petitioners that they were not bonded in case of a loss, petitioners contacted their homeowners' insurance agent, Eustis, Dees & Outzen, to make sure that any potential construction-related losses were covered by their existing homeowners' insurance policy. Petitioners were told by their insurance agent that any construction-related losses were covered by their existing policy. In preparation for construction to the upper floor of petitioners' home, a portion of the roof was removed during the day on March 10, 1988, and, at the end of the work day, the open area of the roof was covered with a protective cloth. In either the late evening of March 10, 1988, or the early morning of March 11, 1988, high winds blew off the protective cloth covering the opening in the roof and rain water entered through the opening, flooding the home. The next day an insurance adjuster from United States Fidelity & Guaranty Co. (USF&G), for which Eustis, Dees & Outzen was an independent agent, appraised the damage and advised petitioners that their existing homeowners' insurance policy did not cover the loss. Despite their denial of coverage, USF&G offered petitioners $5,000, as a good-faith gesture, which they refused.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011