N.C. Vacation Rental Companies’ COVID-19 Coverage Action Tossed for Lack of Physical Loss

  • Order

RALEIGH, N.C. — A North Carolina federal judge has dismissed a COVID-19 coverage action filed by the owners of two vacation rental businesses against Certain Underwriters at Lloyd’s London, ruling that the virus and related government stay-at-home orders did not cause physical loss to their insured property.

In a Feb. 22 order, Chief Judge Richard E. Myers II of the U.S. District Court for the Eastern District of North Carolina ruled that mere loss of use does not trigger coverage, rather the property must be destroyed or damaged.

“Plaintiffs have not presented, nor has the court found, persuasive evidence that …


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