Recently, I helped a client settle a 6 figure insurance claim for Hurricane Sandy caused damages to his hotel in Rockaway Beach, New York. I am licensed in Louisiana but through my association with a nationwide insurance claims firm, Price Law Group, I became involved in the claim. Before our involvement, the insurance company had already paid approximately $44,000 to the policyholder and denied the remainder of the claim. New York Property Insurance took the position that much of the damage was “pre-exisiting” and, thus, not covered under the policy. The trouble with their position was that, because the business was a hotel, the rooms and common areas were inspected daily. So we knew that the damage was not pre-existing. The insurance company even hired an engineer who created a report explaining that the winds were strong enough to have damaged some but not all of the damaged windows, floors, and other areas. This just didn’t add up. The hotel was in good shape before Hurricane Sandy, but badly damaged after. Despite presenting the insurer with our own expert reports and proof of the loss, the claim was still delayed and denied. So we had no choice but to threaten a lawsuit for not only the claim itself, but also for bad faith damages. Soon thereafter, the claim was settled for an additional payment of $110,00.00.
