STORY FROM: Superstorm Sandy Insurance Litigation

City’s Late Notice of Hurricane-Damaged Properties Bars Coverage, Texas Appeals Court Affirms

GALVESTON, Texas — A Texas appellate court has upheld a take-nothing judgment in favor of an insurer in a Hurricane Ike coverage action, ruling that the policyholder’s failure to provide a detailed notice of loss constituted failure to give prompt notice.

On Jan. 31, the Texas Court of Appeals, 1st District, found the insurer was prejudiced by the late notice because it was unaware of damage that may not have been discovered or discoverable at the time of the initial inspections.

League City had coverage from Texas Windstorm Insurance Association (TWIA), covering 140 buildings or structures that were separately listed ...

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