The roof of a 100-year-old farmhouse suddenly collapses under the weight of water. The building was insured under a farm policy that, in this case, only provided coverage for personal property and not the dwelling or real property. The insured claims that the carpet, water heater, and even ceiling tiles are all personal property, and therefore covered! What is a fixture?

Notable Timestamps

[ 00:00 ] - The episode explores how fixture disputes affect insurance coverage, using a collapsed farmhouse roof scenario where coverage depended on whether damaged items qualified as personal property or part of the dwelling.

[ 01:18 ] - The hosts announce the launch of the PACE Program, highlighting it as a new educational resource now available for insurance professionals looking to expand their industry knowledge.

[ 03:00 ] - Whether something is a fixture can impact both available coverage and policy limits.

[ 06:24 ] - Built-in shelving and ceiling fans are discussed as likely fixtures because they are permanently attached, difficult to move, and generally intended to remain with the property over time.

[ 08:06 ] - Portable appliances like air fryers and mini fridges are contrasted with fixtures because owners clearly intend to take them when moving, making them easier to classify as personal property.

[ 09:51 ] - Wall-to-wall carpeting illustrates the gray areas in fixture analysis, as courts may examine attachment methods, customization, and whether the carpet could realistically be removed and reused elsewhere.

[ 12:22 ] - Furnaces and water heaters seem like obvious fixtures, yet disputes can still arise when tenants claim ownership and argue they intended to remove the equipment when leaving the property.

[ 16:52 ] - Decorative ceiling tiles from a 100-year-old farmhouse became the focus of a court case, where the court ultimately ruled they were fixtures because they enhanced the property and were intended to stay with the home.

[ 21:31 ] - The closing takeaways emphasize that courts analyze factors like physical attachment, ease of removal, and the parties' intent when determining whether property qualifies as a fixture under insurance policies.

Your PLRB Resources

Check out the PACE Program! https://www.plrb.org/pace-program/

Dwelling - Coverage A (HO11)

https://members.plrb.org/documents/dwelling-ho11#toc26

Pierce v. State Farm Fire & Cas. Co. (2020)

https://members.plrb.org/documents/pierce-v-state-farm-fire-cas-co-2020

Tenant Improvements & Betterments in Commercial Cases

https://members.plrb.org/education/courses/tenant-improvements-amp-betterments-in-commercial-cases

Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/ask-plrb/) at no additional charge to you or your company.

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Legal Information

The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.

Music: "Piece of Future" by Keyframe_Audio. Pixabay. Pixabay License. Font: Metropolis by Chris Simpson. SIL OFL 1.1. Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription). Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0).