Renewal is a New Contract

Published: Jan. 19, 2023, 4:05 p.m.

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Claim that $16 Extra Premium on Renewal is Bad Faith Fails  Peter Gottlieb claimed that the price he agreed to pay Amica Mutual  Insurance Company to insure his home was $16 too high because it was  based on an excessive coverage limit. Claiming as well that other Amica  insureds paid too much to insure their homes, he filed this putative  class action. After the district court dismissed part of Gottlieb\'s  complaint for failure to state a claim and entered summary judgment he  appealed.  In Peter Gottlieb, individually and on behalf of all persons similarly  situated v. Amica Mutual Insurance Company, No. 22-1074, United States  Court of Appeals, First Circuit (December 30, 2022) disposed of the  class action claims.  FACTUAL BACKGROUND  Gottlieb owns a home in Burlington, Massachusetts. In 2015, he purchased  a homeowners insurance policy from Amica that covered him from March  10, 2015, through March 10, 2016. The coverage limit for replacing his  house in the event of a loss was $311,000, for which Gottlieb paid a  $730 premium. The policy also contained an endorsement providing  additional coverage of up to 130% of the coverage limit if Gottlieb  agreed to certain conditions, including that Amica could adjust the  coverage limit and the premium "in accordance with" "property  evaluations [Amica] make[s]" and "[a]ny increases in inflation." The  policy contained no other language allowing Amica to increase coverage  limits.

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