The president of a jewelry firm was robbed of approximately $1 million worth of diamonds in a hallway outside the room occupied by his company. When he made claim under his jewelers block policy, the insurer offered the $25,000 limit for "off-premises" coverage but denied payment of the $400,000 limit for "premises" coverage.

On appeal of a judgment in favor of the insured, who sued for payment of the higher amount, the appeal court noted that the insured was identified in the policy by name and the address of the building. "Premises" was not otherwise defined or restricted.

The court concluded that the pertinent policy terms were clear and that the insured's premises must be considered to be the entire property at the address specified in the policy. This would include the hallway in which he was robbed outside his room. Observing that any restriction on "premises" to which coverage applies must be clear and unambiguous, the court found that the insured was entitled to the maximum policy limit of $400,000.

The judgment of the lower court was affirmed in favor of the insured and against the insurer.

(ZOMAR CREATIONS, LTD., Plaintiff, Respondent v. THOSE CERTAIN UNDERWRITERS AT LLOYDS, Defendants, Appellants. NY Supreme Court, Appellate Division, First Department. October 22, 1991. 575 N.Y.S.2d 51. CCH 1992 Fire and Casualty Cases, Paragraph 3672.)