STORY FROM: Superstorm Sandy Insurance Litigation
‘Double Recovery’ Rule Limits Policyholders’ Recovery Under SFIP Policy for Hurricane Ike Damage
November 11, 2015
NEW ORLEANS — The “double recovery” rule limits policyholders’ recovery from their wind and flood insurers for losses caused by Hurricane Ike, a federal appellate court has affirmed, explaining that this standard principle applies to Standard Flood Insurance Policy coverage.
In a Nov. 9 opinion, the 5th Circuit U.S. Court of Appeals further ruled that the trial court properly used the market value of the policyholders’ home in arriving at the total loss figure.
Jeffrey and Theresa Pye’s Galveston Island, Texas, two-unit residential building was significantly damaged in September 2008 during Hurricane Ike.
Although they received some compensation from ...