Texas Supreme Court Rules for Insurer and Finds that Tornado is a Windstorm

Is a Tornado or Windstorm

The Texas Supreme Court recently ruled in favor of the insurance company and found that a tornado was considered a windstorm for the purposes of applying the policy's hail and windstorm deductible. In Pure Underwriters Reciprocal Exchange v. Mankoff, the Texas Supreme Court reversed the Texas Court of Appeals for the Fifth District and found that a tornado is unambiguously a windstorm under Texas law.

Under Texas law, a term in an insurance contract is ambiguous if a policyholder could reasonably give it a different meaning than the policyholder. The question is not whether one meaning is better than the other. The meaning of words used in an insurance policy is examined using their plain meaning and a court often uses dictionary definitions to determine plain meaning. If there is any uncertainty, then the Court must adopt the meaning that favors the policyholders. The question of whether a term is ambiguous is decided by a judge and not a jury.

This case shows how tricky these questions can be and the importance of reading your policy and consulting with a policyholder lawyer if you have a claim involving a difference of opinion about what the policy means. Contact us if we can help you.