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The RSUI unit is off the hook to cover Hurricane Harvey damage



A federal appellate court overturned a lower court ruling, holding that an RSUI Group Inc. unit is not liable for water damage caused by 2017 Hurricane Harvey under its policy terms.

2016, Houston-based SCD Memorial Place II LLC bought a "deductible repurchase policy" that covers large deductibles from the RSUI unit Landmark Insurance Co., according to Thursday's ruling by the 5th U.S. Circuit Court of Apparels in New Orleans in Landmark American Insurance Co. v. SCD Memorial Place II, LLC.

Its primary policy was with the American International Group Inc. unit Lexington Insurance Co., which is not a party to the dispute.

Landmark's policy insurance clause stated: "Risks covered: Storm. "

In August 201

7, Hurricane Harvey landed and caused enormous damage to one of SCD's insured properties when Buffalo Bayou flooded its beaches and water ran out on the property. There was no damage from either wind or hail. [19659002TheinsurersandtheSCDdisagreedastowhethertheinsurancecoveredthewaterdamageandLandmarksuedtheUSDistrictCourtinHoustonforadeclarationthattheSCD'spolicydidnotapplytotheloss

The district court ruled in favor of the SCD, but was overruled by a unanimous three-judge in the Court of Appeal.

"Landmark claims that the policy covers the stated dangers with & # 39; Windstorm or Hail & # 39; which are & # 39; associated with a Named Storm (here, Hurricane Harvey) & # 39; but not all the dangers associated with a Named Storm, "the verdict said. 39; and therefore the policy covers all the dangers associated with it, "it said.

" We agree with Landmark because its interpretation is consistent with the simple meaning of the policy text, "the ruling said. "Landmark's interpretation, unlike SCD & # 39 ;s, makes sense with the framing phrase & # 39; Perils Covered & # 39;."

"This framing sets & # 39; Windstorm & # 39; and & # 39; Hail & # 39; "as specific hazards that can be associated with a number of weather events rather than as weather events that include any number of hazards", it was stated in the judgment, by revoking the judgment in a lower court and issuing a judgment in Landmark's favor.

Actors in the case did not respond to a request for comment.

In March 2021, the 5th Circuit upheld a lower court decision in favor of a Texas tenant-owner association, which stated that it was entitled to damages for boat slips destroyed during Hurricane Harvey.

[19659002]


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