N.C. Vacation Property Owner Loses Bid for COVID-19 Coverage

  • Opinion

RALEIGH, N.C. — A North Carolina appellate court has upheld dismissal of a COVID-19 coverage action filed by the owner of a vacation rental property, ruling it failed to allege “direct physical loss,” as required by the policy.

In a July 19 opinion, the North Carolina Court of Appeals explained it isn’t enough to allege “loss of use” of a property to trigger coverage.

Four Roses LLC owns a vacation property in Kill Devil Hills, N.C. Four Roses experienced financial losses beginning in March 2020 when, in response to the COVID-19 pandemic, the state’s governor issued stay-at-home orders and county …


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