Hegel v. The First Liberty Insurance Corp.

The Hegels (plaintiffs) had homeowner's insurance from First Liberty (defendant) covering 'sinkhole loss,' defined as 'structural damage to the building, including the foundation, caused by sinkhole activity'; the policy did not define 'structural damage.' After finding wall and floor damage, they claimed coverage. First Liberty denied it, attributing the damage to normal shrinkage and settling, not structural damage. The parties disputed the meaning of 'structural damage.'

Whether an unambiguous contract term is given its plain meaning viewed in the context of the entire contract.