Lloyds Underwriters v. Keystone Equipment Finance Corp., 25 So3d 89 (Fla. 4th DCA 2009)

In this case, Keystone Equipment (the “insured”), purchased insurance coverage from Lloyds Underwriters (the “insurer”) for a commercial tractor trailer.  The insurance policy had an effective date of November 30, 2004.  On December 18, 2004, the tractor trailer was stolen.  The insurer denied the claim although the policy provided coverage for theft.  The written policy contained a “Garaging or Secured Yard Warranty” which required the insured to keep the tractor trailer in a closed garage, a guarded enclosed parking lot, or parked beside the insured’s residence.  Because the insured had failed to store the tractor trailer in either of these ways, Lloyds found that Keystone was in breach of this warranty and was not entitled to recover damages for the stolen tractor trailer.  At the time of the loss, Keystone had not yet received a copy of the insurance policy and was unaware of the warranty provision. (more…)