In State Farm Lloyds v. Hanson, a Texas appellate court considered State Farm Lloyds’ appeal from a judgment in favor of its insured. The case arose when a woman closed on a house that had a 15-year-old roof. The roof shingles were 30 years old and fastened with staples. During the building inspection, there were no concerns stated about the roof. The woman requested coverage through her State Farm agent, who prepared an underwriting report. In the report, there was nothing reflected about rotting, hail damage, or interior leaks. Nothing was stated as a point of concern.
The homeowners’ policy that was issued by the defendant provided coverage for accidental physical losses to the property. It excluded certain losses arising out of weaknesses in workmanship. In June 2012, there was a huge storm. The next day, a roofing company salesman made adjustor appointments for houses in the woman’s neighborhood. In October, he inspected the woman’s roof, found areas where shingles were not sealed to lower layers, and suggested she file an insurance claim.
She and the salesman both called in a claim for wind damage to the roof. The claims representative came with the roofing salesman to check out the roof. He found there wasn’t enough damage, and no covered loss had been sustained. The woman was unsatisfied and asked for another inspection. This inspector also found no covered loss, and the claim for wind damage was denied.