California Insurers Must Pay Even If Home Damage Exceeds Property Value

Insured homeowners in California whose homes have been badly damaged, but not destroyed, are entitled to coverage for the cost of repairing them, even if that cost far exceeds the property’s market value, under a ruling that has now become final. The state Supreme Court unanimously denied review Wednesday of an insurance association’s appeal from a lower-court decision favoring a Richmond homeowner, and also denied the insurer’s request to bar use of the lower-court ruling as a precedent for future cases. The ruling is now binding on trial courts statewide.