Blw 2510 - Estate of Luster V. Allstate Insurance Co.

Case Name: Estate of Luster v. Allstate Insurance Co. (Chapter 51, pages 1011-1012)

Court Delivering Option: United States Court of Appeals (Seventh Circuit) 2010

Citation: 598 F.3d 903

Facts: Mrs. Wavie Luster was a widowed woman living alone in her house in Merrillville, Indiana. On or about February 10, 1999, at the age of 83, Mrs. Luster applied for homeowner's insurance through Allstate agent, Robert Burkus. In the application, Mrs. Luster said she had been living in the home since 1965 and was living alone. Allstate issued a policy for the property located at 707 West 53rd Avenue in Merrillville, Indiana. Mrs. Luster's homeowner's insurance policy provided dwelling protection and personal property protection for loss occasioned by fire, lightning, explosion, or smoke and contained a provision that should Mrs. Luster die, coverage would continue to the end of the premium period for her legal representative. The policy provided for coverage to abate if the loss at issue was caused by "[a]ny substantial change or increase in hazard, if changed or increased by any means within the control or knowledge of an insured person," and specified that Allstate would not cover loss caused by "Vandalism or Malicious Mischief if your dwelling is vacant or unoccupied for more than 30 consecutive days immediately prior to the vandalism or malicious mischief."

In October 2001, when she was 83 years old, she was injured in a fall. After being released from the hospital, after her injury, she moved into an extended care facility. She executed a power of attorney to her lawyer, Rick Gikas, who is the representative of her estate in this litigation. She never returned home after being injured, she stayed in an extended care facility until she died in April 2006 (4 ½ years after her fall). Gikas notified Allstate of his power of attorney and directed the company to bill the insurance premiums to his law office. Three months after Luster’s death, a fire caused extensive damage...