Strowig Properties, Inc. (Strowig) took its Commercial Property insurer, American States Insurance Company, to court because of a loss suffered by its property, Plaza Theater. The Plaza was demolished by a severe windstorm. Besides loss of the building, Strowig incurred $90,000 in debris removal costs. The theatre was covered by a commercial property policy that showed building limits of $139,900 and contained an endorsement that showed a $25,000 limit for debris removal. The two parties disagreed over the payment Strowig received for its total loss.

Strowig was paid the entire building limit ($139,900) as well as the $25,000 debris removal limit. However, the insured made an additional debris removal claim for nearly $35,000 because of how it interpreted the policy's coverage. American States denied the request for additional payment because it felt it had met its total obligation. Both parties filed for summary judgments. The lower court granted American States request and denied Strowig's. Strowig appealed the decision.

The higher court considered the policy language, as modified by the debris removal endorsement, in light of Strowig's contention. The insured restated its argument that the wording was ambiguous and, besides owing the separate $25,000 in debris removal coverage, could also be read as obligated to an additional 25% of the policy limit ($139,900 x .25 = $34,975). After reviewing the applicable wording, the higher court viewed it to be clearly written. In the court's opinion, American States fulfilled its coverage obligation and it upheld the lower court decision in favor of the insurer.

Strowig Properties, Inc., Appellant, v. American States Insurance Company, Appellee. Kansas Court of Appeals. No. 88,597. October 2, 2003. Affirmed CCH 2004 Personal and Commercial Liability Cases 48001