Kumar v. Mid-Century Insurance Co. CA1/2

CourtCalifornia Court of Appeal
DecidedJune 30, 2026
DocketA173097
StatusUnpublished

This text of Kumar v. Mid-Century Insurance Co. CA1/2 (Kumar v. Mid-Century Insurance Co. CA1/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kumar v. Mid-Century Insurance Co. CA1/2, (Cal. Ct. App. 2026).

Opinion

Filed 6/30/26 Kumar v. Mid-Century Insurance Co. CA1/2 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION TWO

SUDARSHAN KUMAR, Plaintiff and Appellant, A173097 v. MID-CENTURY INSURANCE (Alameda County Super. Ct. COMPANY, No. 23CV026531) Defendant and Respondent.

In January 2021, Sudarshan Kumar discovered mold caused by a leaky water heater in the garage of his rental property and submitted a claim to his property insurer, Mid-Century Insurance Company (Mid-Century). After investigating, Mid-Century issued partial payment and “clos[ed Kumar’s] claim” in February 2021. From April 2021 to January 2023, Kumar intermittently submitted additional information and requests for coverage; each time, Mid-Century responded in writing, but it never reopened Kumar’s claim or otherwise extended the time to file suit. In January 2023, Kumar filed a lawsuit against Mid-Century, seeking damages for the costs of repair and loss of use of his property. The trial court granted Mid-Century’s motion for summary judgment, finding Kumar’s claims barred by the one-year limitations period in his policy. On appeal,

1 Kumar raises several challenges to the trial court’s ruling; none have merit. Therefore, we affirm. BACKGROUND Kumar obtained a homeowners insurance policy from Mid-Century for his rental property in Fremont, California, that covered the period of October 2020 to October 2021. The policy included a “Suit Against Us” provision, which required that any lawsuit “on or arising out of” policy coverage “must be brought within one year after inception of the loss or damage,” except for claims “related to an event for which a ‘state of emergency’ ” has been declared,1 which may be brought within “2 years after inception of the loss or damage.” In January 2021, after a tenant had “recently vacated” the rental property, Kumar “discovered water damage and mold in the garage at the Property, apparently caused by a leaking or burst water heater.” Kumar reported the damage to Mid-Century on February 3, 2021. Mid- Century began investigating the claim and spoke with Kumar’s water heater technician, who “confirmed that the hot water heater was leaking due to age related wear and tear” and noted “mold throughout the garage.” In reviewing photos of the garage provided by Kumar, the Mid-Century claims adjuster also observed black mold and informed Kumar over the phone that mold was not covered by his policy. On February 10, 2021, Mid-Century mailed Kumar a “Claim Outcome Letter,” denying his claim. The letter explained that Mid-Century’s “investigation revealed that [Kumar’s] hot water heater failed due to age

1 As defined by the California Government Code, a state of emergency

is “the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the state” including, as relevant here, “epidemic.” (Gov. Code, § 8558, subd. (b).)

2 related wear and tear causing mold damage,” which “are uninsured and/or excluded from coverage under [Kumar’s] policy.” Therefore, there was “no coverage,” and Mid-Century would not pay for any damages or losses incurred. Still, Mid-Century dispatched “ServiceMaster” “to do a final moisture check/inspection” “to determine whether there was any covered damage.” The February 10 letter included excerpts from the relevant portions of Kumar’s insurance policy, including the “Suit Against Us” provision, and closed with this statement also at issue on appeal: “We’ve completed the adjustment of your loss and we are closing your claim. While we welcome any additional information you may wish to provide, the claim will not be reopened unless we notify you of such in writing.” After its inspection of the property, “ServiceMaster confirmed that there were drywall surfaces in the garage that were impacted by the sudden release of water from the water heater.” “Based on the new information received from ServiceMaster” suggesting “a sudden release of water from the water heater,” Mid-Century determined that “the water damage to the drywall was covered under the Policy.” Accordingly, on February 16, 2021, Mid-Century mailed Kumar another “Claim Outcome Letter” and check for $5,010.93, along with a breakdown of the covered losses. Again, the letter closed with the “Suit Against Us” provision and a statement that Mid-Century had “completed the adjustment of [Kumar’s] loss” and was “closing [his] claim.” The letter continued, “the claim will not be reopened unless we notify you of such in writing” and further stated: “Submission of supplemental claims and requests for recoverable depreciation, and our processing payment thereof, does not automatically reopen the claim.”

3 On April 21, 2021, Kumar submitted to Mid-Century an estimate to rebuild the entire building (from foundation to roof) by an unidentified contractor for $555,700.2 Mid-Century responded to Kumar the next day (April 22) with an “Investigation Status Letter,” acknowledging receipt of the “additional information” provided and requesting more information “[t]o investigate [Kumar’s] claim,” including a “detailed contractor report explaining/clarifying the estimate” and supporting photographs. “However,” the letter continued, “you must provide us this information prior to the expiration of the suit limitations time period set forth in . . . your policy.” The letter closed with the “Suit Against Us” provision. Mid-Century sent Kumar a follow-up letter on April 28, 2021, again requesting additional information about Kumar’s estimate. The claims adjuster noted several attempts to contact Kumar and wrote: “I’ll be happy to reopen your claim and resume handling if you provide [the requested information] within the time period outlined in your policy,” and included the “Suit Against Us” provision in the letter. Kumar did not provide the requested information. In May 2021, Mid-Century was able to independently identify Kumar’s contractor, who confirmed that he had prepared the estimate but did not recall any details, did not have any photographs, and could not explain why the work was necessary. On May 10, 2021, Mid-Century sent Kumar another “Claim Outcome Letter”: “Unfortunately, there is no additional coverage for your claim based on the facts known to us at the present time.” The letter again requested a

2 In the cover e-mail to Mid-Century attaching the contractor’s bid,

Kumar sought an additional $35,000 for “plumbing,” $50,000 for “Plan & engineering,” and $50,000 for “City fees,” for a total request of “$690,700.” Kumar did not provide documentary support for these additional fees.

4 contractor report and supporting photos “for consideration of coverage,” and asked Kumar to “provide . . . this information prior to expiration of the suit limitations period” in the policy. The letter closed with the “Suit Against Us” provision of Kumar’s policy. In June 2021, Kumar sent Mid-Century additional photographs of mold and dry rot at his property. The same month, Mid-Century responded in writing, reiterating its denial of coverage. The letter again included the “Suit Against Us” provision and stated that Kumar’s “claim will not be reopened unless we notify you of such in writing.” Later that month, Kumar e-mailed Mid-Century, asserting that the water damage qualified as a sudden and accidental loss covered under the policy. In response, Mid-Century retained an engineering firm to inspect Kumar’s property, which occurred on July 13, 2021.

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Bluebook (online)
Kumar v. Mid-Century Insurance Co. CA1/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kumar-v-mid-century-insurance-co-ca12-calctapp-2026.