Property Owner Loses $19 Million Deductible Fight in Superstorm Sandy Suit

Aspen Specialty Insurance Co. v. 4NYP Ventures LLC (S.D.N.Y., February 25, 2016)

A New York federal court ruled that the owner of a Manhattan office building damaged by Superstorm Sandy must pay a $19.2 million deductible for coverage from two excess insurers because the building was in a designated “high hazard flood location.” The property was covered by a master insurance policy, the terms of which clearly stated the deductibles for properties located in high risk flood areas would be 5 percent of their total value. The judge found the policy was not ambiguous in this regard.