Property Management Company Sues Insurers Over False-Ad Case

A property management company serving homeowners and renters is suing its insurers—including units of Berkshire Hathaway Inc., Hartford Insurance Group Inc., and Nationwide Mutual Insurance Co.—over their refusal to pay legal defense costs in an underlying false-advertising case.

Belong Inc., formerly known as Belong Home, filed the breach-of-contract and bad-faith suit against the insurers Tuesday in the US District Court for the Northern District of California.

In the underlying proposed class action, brought in California state court, a former customer sued Belong alleging he’d been misled by false information on the company’s website. The parties settled the case ...