Zurich American Insurance recently lost their summary judgement bid on hurricane damage claims in Florida court.

Plaintiff Grey Oaks Country Club Inc. filed its hurricane claim lawsuit against Zurich American in September 2018, claiming that the insurance company breached its obligations when it failed to cover all of the country club’s losses from Hurricane Irma.

Hurricane Irma was a massive Category 5 hurricane that hit Florida in September 2017. The storm caused billions of dollars in damage, making it the fourth costliest tropical cyclone in U.S. history.

Although Irma was downgraded to a Category 3 by the time it hit Florida, the hurricane allegedly caused damage to Grey Oaks’ landscaping, main clubhouse, and golf course. The country club claims that the storm caused $9.5 million in damages for all of these locations.

The country club reportedly filed a claim with Zurich American following the hurricane, but the insurer allegedly only paid an initial $3.97 million to Grey Oaks. The country club argued that they were owed more under their policy but Zurich American failed to provide them the coverage they paid for.

The insurance company motioned for partial summary judgment in May following Grey Oaks’ same motion in April. Zurich American said that Grey Oaks’ interpretation of their policy terms was “strained and unreasonable,” and that the $4.76 million paid to date is reasonable.

“Based upon a fair, straightforward and reasonable reading of the policy, it is clear that the policy provides a $500,000 limit for Golf Course Outdoor Grounds Coverage,” Zurich argued.

U.S. District Judge John E. Steele recently denied Zurich American’s motion for summary judgment, finding that the motion was too hasty. Discovery remains open until November 18 because, as Judge Steele notes, facts of the case remain in question.

“Grey Oaks clearly disputes that this is the extent of damages that it is owed under the terms of the policy,” the judge wrote. “Therefore, the motion for summary judgment can be denied on this basis alone.”

Hurricane Damage Claims

Recently, insurers in Florida have been blasted in the press for failing to follow through on hurricane damage claims. Although Hurricane Michael hit Florida over a year ago, over 17,000 hurricane claims were pending in late September. Florida’s Insurance Commissioner David Altmaier reportedly acknowledged the issue in a statement on the one year anniversary of the hurricane.

“As we mark the one-year anniversary of Hurricane Michael, OIR recognizes the tremendous work that still needs to be done to close insurance claims and allow Florida’s Panhandle residents and business owners to rebuild and recover from this devastating storm,” Altmaier stated according to Insurance Journal.

Insurers have defended themselves amidst the delays, pushing blame onto the lack of contractors available to get repairs done. Although these struggles are making it hard to resolve claims within the 90 day prompt pay period, the industry reportedly remains dedicated to closing out any Hurricane Michael claims as soon as possible.

The Hurricane Damage Claims Lawsuit is Case No. 2:18- cv-00639 in the U.S. District Court for the Middle District of Florida.