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Payment of Renewal Premium is Acceptance of Policy as Written  

Ronald Morgan and Cheryl Morgan appealed from the trial court\'s grant of  summary judgment in favor of Dickelman Insurance Agency, Inc.,  Dickelman Insurance, Inc., Jason Dickelman, and State Farm Fire and  Casualty Co. (collectively Defendants) on the Morgans\' complaint for  breach of contract, promissory estoppel, negligence and fraud.  In Ronald Morgan and Cheryl Morgan v. Dickelman Insurance Agency, Inc.,  Dickelman Insurance, Inc., Jason Dickelman, and State Farm Fire and  Casualty Co., No. 22A-PL-892, Court of Appeals of Indiana (December 30,  2022) the Court of Appeal of Indiana made clear that an insured is  required to protect their rights by reading the renewal notice of a  policy. 

FACTS 

The facts most favorable to the Morgans as the nonmovants show that in  2007, they purchased a log home in Lafayette, Indiana. In 2008, they  acquired homeowners insurance with State Farm. The Morgans paid  insurance premiums through escrow funds held by their mortgage company.  Each year, State Farm mailed the Morgans "renewal notices." The insureds  did not recall looking at the notices.  In 2015 the Morgans submitted a claim to State Farm for extensive water  damage to their home with a repair estimate of $712,000 to $800,000.  Ultimately, State Farm paid the Morgans $330,034.88 for the claim, which  represented their dwelling coverage limit for the policy period April  4, 2015, to April 4, 2016, plus inflation guard protection and the cost  of debris removal.  On September 20, 2017, the Morgans sued Defendants alleging breach of  contract, promissory estoppel, negligence, and fraud. The trial court  issued an order granting summary judgment for Defendants on all of the  Morgans\' claims.  

DISCUSSION AND DECISION  

In their complaint, the Morgans alleged that Defendants breached an oral  agreement to increase their dwelling coverage by $150,000. In an  affidavit, Dickelman attested that the Morgans never authorized  Dickelman Insurance to increase the dwelling limits. Thus, Defendants\'  designated evidence established that they did not commit breach of  contract.  In this case, State Farm mailed renewal certificates to the Morgans that  clearly and unambiguously informed them of the amount of their policy  dwelling coverage.  In Indiana, "[I]nsureds have a duty to read and to know the contents of  their insurance policies." [Safe Auto Ins. Co. v. Enter. Leasing Co. of  Indianapolis, 889 N.E.2d 392, 397 (Ind.Ct.App. 2008).]  A casual scan by an unsophisticated customer of the first page of the  two-page 2013 renewal certificate would inform that person that the  dwelling coverage was limited to $297,100 and that the premium charged  was for this amount of coverage. By retaining the policy and paying the  premium through an escrow account held by their mortgage company, the  Morgans accepted the offer to renew. 

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