A Brooklyn, N.Y. couple was awarded $1 million dollars after a Manhattan Supreme Court jury ruled in favor of their claim made to Allstate Insurance for damages to their home caused by vibrations from a supersonic airliner taking off from a nearby airport. The case also cast a few more shadows on Allstate's claim-handling methods.
According to a release from the law firm Wilkofsky, Friedman, Karel & Cummins, John and Annette Ferranti had a custom-built steel and concrete home in Mill Basin, Brooklyn. In July of 2002, an Air France Concorde flight had trouble gaining altitude upon take off, and subsequently “buzzed” Belle Harbor at a hazardously low altitude.
Residents of the area complained about cracking plaster and shaking foundations, including the Ferrantis, who experienced leaking thorough cracks in the concrete blocks of their 12-year-old home after rainstorms. The Ferranti's engineer explained that the Ferranti's home responded differently to the vibration than the many homes surrounding it because it was the only home in the area constructed of steel and reinforced concrete. The other wood-frame homes had greater ability to flex and move in response to the vibration whereas the Ferrantis home was less forgiving to movement and therefore cracked in response.
Issues regarding Allstate's handling of the claim also surfaced, adding fuel to recent fires that the company's claim practices make it intentionally difficult for insureds to collect appropriate amounts from their policies. According to the release, Allstate had insured the home since 1990 but refused to pay the claim, alleging that the damages were caused by bad construction and poor maintenance. Furthermore, the company said it should be excused from the claim since it received first notice of the loss 14 months after the event.
But evidence presented at the three-week trial showed that the Ferranti's claim was under investigation for two years before Allstate denied it, and that the company at no time made an offer to settle the claim. Former Allstate claim manager Anthony Reitano even testified on behalf of the homeowners, saying that he believed the claim was covered and that the notice given Allstate was reasonable under the circumstances.
At the time of his testimony, Reitano was no longer working for Allstate and was serving as a public adjuster with American Claims of Brooklyn.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
