Iowa High Court Says ‘Loss of Use’ Caused by COVID-19 Orders Does Not Trigger Coverage

DES MOINES, Iowa — The Iowa Supreme Court has ruled that a country club cannot recoup COVID-19 losses from Selective Insurance Co. because the mere loss of use of its facilities did not fulfill the policy’s requirement of “direct physical loss of or damage to” its property.

In an April 22 opinion, the court explained that the phrase “loss of or damage to property” requires damage that is physical in nature, and government closure orders do not cause that type of damage.

Wakonda Club operates a private golf and country club in Des Moines, Iowa. On March 17, 2020, the …