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"Case Studies" > Insurance - Coverage > Insurance Condo Project Denied Coverage after Eco-Terrorist Attack

Insurance Condo Project Denied Coverage after Eco-Terrorist Attack

Summary:


Underlying coverage for primary and first excess coverage totaled $15 million.
Defendant’s policy was for $25 million above the $15 million attachment point.
However, defendant inexplicably denied coverage for any property valued less
than $15 million, regardless of whether any claim was made. According to this
logic, fully 263 out of 320 properties were ineligible for coverage, which was
clearly not what plaintiffs agreed to when they bought the original policy.

Plaintiff property management company was building a condominium project when it was burned to the ground by self-proclaimed eco-terrorists. While coverage, per se, was not denied because of the nature of the attack, an excess insurer did deny coverage because of the value of the property, which the company said was not high enough to qualify for coverage.


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