U.S. Fire Ins. Co. v. Welch
| Citation | 163 Ga.App. 480,294 S.E.2d 713 |
| Decision Date | 13 September 1982 |
| Docket Number | No. 64454,64454 |
| Parties | UNITED STATES FIRE INSURANCE COMPANY v. WELCH. |
| Court | United States Court of Appeals (Georgia) |
William C. Sanders, Thomasville, for appellant.
Willard H. Chason, Cairo, for appellee.
This is an action to recover for a collision loss under a policy of automobile insurance.
Appellee's automobile was insured by appellant insurer in a policy which provided collision coverage with a liability limit of the lesser of the actual cash value of the damaged vehicle or the amount necessary to repair or replace the vehicle, less $200 deductible. The vehicle was damaged by being completely immersed in the waters of a lake and the damage was covered by the collision loss provisions of the policy. The vehicle had been purchased new less than three months before the loss and had been driven less than 1800 miles. The water immersion voided the manufacturer's warranty. At the insurer's election repairs were made at a cost of $2,171 but the repairer would not guarantee the condition of the vehicle, only the parts replaced and the repairs actually made. The insurer paid the appellee the repair cost less the deductible, which was less than the actual cash value of the vehicle. The difference in the value of the vehicle before and after the damage and after the repairs, plus deductible, was $3600 loss in value. In a non-jury trial, based upon the terms of the policy and a stipulation which included the foregoing facts, the trial court found for appellee in the amount claimed, from which this appeal is taken. Held:
Appellant asserts that the judgment was erroneous because appellee should be held to the literal terms of the policy that if the vehicle is repaired the insured must accept the cost of repairs even if it is less than the actual cash value of vehicle. Appellant argues that its policy terms distinguishes it from the policy provisions in other cases which have decided this issue adversely to its position.
We do not agree with the assertion.
Appellant misconstrues the meaning of repair in the limit of liability provision as meaning any repair. We construe repair to mean restoration of the vehicle to substantially the same condition and value as existed before the damage occurred. Compare, Auto-Owners Ins. Co. v. Green, 220 So.2d 29 (Fla.App.).
Appellant also overlooks its primary contractual obligation. "We will pay for loss caused by collision ... minus any applicable deductible ..."
" 'Policies of insurance will be liberally construed...
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...repaired, plus the $100 deductible," where the insurer opted to make repairs and did so defectively. In United States Fire Insurance Co. v. Welch, 163 Ga.App. 480, 294 S.E.2d 713 (1982), that appeals court held that the defendant insurance company had the option to pay for the loss in money......
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...condition, noting that the "insured must be made whole, except for any deductible, under any option." And U.S. Fire Ins. Co. v. Welch, 163 Ga.App. 480, 294 S.E.2d 713 (1982) held that "repair" as used in the limitation of liability provision did not mean "any repair," it meant "restoration.......
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...was key to the next case in which the Court of Appeals applied the basic rules it had stated in 1926. In U.S. Fire Ins. Co. v. Welch, 163 Ga.App. 480, 294 S.E.2d 713 (1982), the insurer insisted that its policy gave it the right to pay for repairs only without regard to the value of the veh......