Law360 Quotes Gindele on Property Insurance Decision

A recent Law360 article, “Texas Tornado Ruling Puts Policy Definitions in Spotlight,” reported on a February 13 Texas Supreme Court decision addressing the interpretation of insurance policy terminology. The Court held that a tornado falls within the ordinary meaning of a “windstorm” under a homeowners insurance policy, reversing a lower court decision. The ruling is significant because it provides important guidance on the interpretation of insurance policy terminology for insurers and policyholders alike.

“The Texas Supreme Court’s decision reinforces that undefined insurance policy terms will be interpreted according to their plain and ordinary meaning, and courts will not create ambiguity based on technical or hyper-specific distinction,” said Laura Gindele, a partner in Rivkin Radler’s Insurance Coverage Practice Group.

The case arose from a dispute over whether tornado damage to a Dallas home was subject to the policy’s “Windstorm or Hail Deductible.” The Court concluded that, because the policy did not define the term “windstorm,” it must be interpreted according to its ordinary meaning. Looking to dictionary definitions, statutes, and case law, the Court held that a tornado falls within the definition of a windstorm and rejected the policyholders’ argument that the term was ambiguous.