United States District Court, D. Colorado
ORDER GRANTING IN PART DEFENDANT'S MOTION FOR
CHRISTINE M. ARGUELLO United States District Judge
matter is before the Court on Defendant Owners Insurance
Company's Motion for Summary Judgment, wherein Defendant
argues that Plaintiff 5555 Boatworks Drive LLC cannot recover
on its claims because it did not satisfy the terms of the
parties' insurance contract. (Doc. # 40.) Defendants
request that the Court enter summary judgment in its favor
and dismiss Plaintiff's case entirely. (Id. at
8.) For the reasons described below, the Court grants in part
and denies in part Defendant's motion.
insured the property at 5555 Boatworks Drive, Highlands
Ranch, Colorado (the “Property”), pursuant to
Policy Number 74041388 (the “Policy”) at all
relevant times. (Doc. # 3 at 2.) Plaintiff was the direct
beneficiary of the Policy. (Id.) Relevant here, the
Policy stated that Defendant “[would] not pay for loss
or damage caused by or resulting from . . . [w]ear and
tear.” (Doc. # 40-4 at 4.)
relevant to the instant motion, the Policy explained that the
insured (Plaintiff) may make a claim for replacement cost
instead of or in addition to a claim for actual cash
value. (Doc. # 40-1 at 14.) Where an insured
seeks the replacement cost, the following restrictions
3. Replacement Cost . . .
d. We will not pay on a replacement cost basis for any loss
(1) Until the lost or damaged property is actually
repaired or replaced; and
(2) Unless the repairs or replacement are made as soon as
reasonably possible after the loss or damage.
e. We will not pay more for loss or damage on a replacement
cost basis than the least of:
(1) The Limit of Insurance applicable to the lost or damaged
(2) The cost to replace, on the same premises, the lost or
damaged property with other property;
(a) Of comparable material and quality; and
(b) Used for the same purpose; or
(3) The amount you actually spend that is necessary to repair
or replace the lost or damaged property.
(Id.) (emphasis added).
September 29, 2014, the Property was damaged by hail and wind
during a severe storm. (Doc. # 3 at 2.) Plaintiff states that
damage to the Property is estimated at $577, 383.55.
(Id.) Plaintiff filed a claim with Defendant shortly
after the ...