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Ohio Foreclosure Defense & Consumer Law > Blog > Consumer Law > Ohio Couples Files Breach Of Contract Lawsuit Against Allstate After Their House Burns Down

Ohio Couples Files Breach Of Contract Lawsuit Against Allstate After Their House Burns Down


The Ohio State Fire Marshal has recently weighed in on a house fire that occurred in August of 2021. The report was inconclusive. The Fire Marshal was unable to rule out accidental or intentional causes of the fire due to electrical appliances in the area of origin. The investigation could not rule out a human act, whether intentional or accidental. The plaintiff in this case, who is also the mayor of Lebanon, filed a lawsuit against his homeowner’s insurance insurer, Allstate, for breach of contract and bad faith after several delays in handling the claim.

By way of reply, Allstate argued that the policy excludes intentional acts or arson. Allstate also alleged that the policyholder held back information or misrepresented information for the purpose of filing the claim. They therefore breached their duty to cooperate with the insurer.

Allstate argued that its investigation revealed that it was more likely than not that the fire was caused by intentional acts or at the direction of the insured policyholder and that the loss was reasonably expected or intended.

Insurance breach of contract lawsuits 

Breach of contract lawsuits filed against insurance companies involves a number of different types of claims. In the case mentioned above, the policyholder argued that Allstate had delayed and denied their claim and filed a lawsuit against the insurance company. The insurance company responded to the lawsuit by alleging that the policyholder had intentionally set his own house on fire. The case went to the Ohio State Fire Marshal to decide. The Fire Marshal could not conclusively determine how the fire occurred. An attorney representing the plaintiffs stated that the findings showed no basis for the determination that the house was intentionally set aflame.

If the plaintiffs did set their house on fire, then that would preclude coverage under the policy. Most homeowner’s insurance policies do not include arson of any type. That includes arson that is committed by a third party and not the policyholder.

If there is a determination that Allstate breached its contract with its policyholders and acted in bad faith, then the policyholders may be able to recover additional damages in excess of the value of the home which was insured by the company. These include monetary damages and attorney’s fees, plus they would have to honor the original insurance payout related to the destruction of the home.

Breach of contract lawsuits in Columbus, OH 

Breach of contract occurs whenever there is an agreement between two parties and one of those parties does not fulfill their end of the bargain. When a breach of contract occurs, the parties end up disputing the matter in court. Breaches can be considered either material or immaterial A material breach is one that is significant and affects the fulfillment of the contract. An immaterial breach is one in which the terms of the contract are more or less fulfilled, but one party failed to abide by the precise terms of the contract.

Talk to a Columbus Breach of Contract Attorney Today 

Kohl & Cook Law Firm, LLC handles breach of contract claims for individuals and businesses who have been harmed by a breach of contract. Call our Columbus consumer lawyers today to schedule an appointment and we can begin discussing your situation right away.



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