The U.S. District Court for the Southern District of New York has ruled, in a Hurricane Sandy case, that a flood coverage deductible was $19.2 million, as insurers contended, and not $100,000, as the insured argued.
On May 22, 2012, 4 NYP Ventures LLC acquired 4 New York Plaza, the court explained. In anticipation of that transaction closing, it earlier hired CBRE Group Inc., to manage the property and Edge Financial Advisors to obtain property insurance.
4 NYP's lender required $100 million in flood loss coverage for the property. To that end, 4 NYP directed Edge to initiate procedures to add the property as an insured location under CBRE's preexisting master property insurance policy (FM Master Policy) with Factory Mutual Insurance Co. (FM), which covered hundreds of CBRE-managed properties.
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