New York state court allows policyholder to pay minimum deductible for flood loss
In a January 2014 decision that may prove valuable to policyholders in their disputes over deductibles, a New York state trial court ruled that the appropriate deductible applicable to an oil terminal operator’s $2.28m (£1.38m) Superstorm Sandy flood loss claim was the minimum deductible — thus rejecting the insurer’s position that the deductible should be calculated based on a percentage of the total value of the insured property, as such a construction would result in a $2.49m deductible and ‘render the flood damage sublimit… absolutely meaningless’.
Castle Oil Corporation, the owner and operator of a New York City fuel oil terminal with a total insurable value of $124.7m was insured by Ace American Insurance Company at the time of Castle Oil’s flood loss in October 2012. Ace’s all-risk commercial property policy had been endorsed with flood coverage subject to a $2.5m sublimit. An additional endorsement provided that the deductible for flood damage in special flood hazard areas would be ‘two per cent of the total insurable values at risk per location subject to a minimum of $250,000’…
If you are registered and logged in to the site, click on the link below to read the rest of the Pillsbury briefing. If not, please register or sign in with your details below.
News from Pillsbury Winthrop Shaw Pittman
News from The Lawyer
Briefings from Pillsbury Winthrop Shaw Pittman
Improvements proposed to regulations governing petitions to the California State Water Resources Control Board
Although the process is straightforward, the demands on the State Water Resources Control Board’s limited resources have turned the petition process into a black hole.
Deadlines coming for multinationals’ retirement plans and US taxpayers with foreign financial interests
In 2010, the US enacted a sweeping change in enforcement of its tax laws on foreign financial interests, the Foreign Account Tax Compliance Act.