STORY FROM: Superstorm Sandy Insurance Litigation
Insured Cannot Blame Agent, Insurer, For Lack of Flood Coverage, 5th Cir. Affirms
March 9, 2017
NEW ORLEANS — A federal appeals court has upheld an award of summary judgment to an insurer in a Hurricane Ike action, ruling that the policyholder failed to show that she reasonably relied on alleged misrepresentations made by her insurance agent and insurer concerning the insurability of her property.
In a March 7 order, the 5th Circuit U.S. Court of Appeals explained that the policyholder should have been aware that her property was ineligible for federally funded flood insurance.
In September 2006, Danuta Lobeck purchased a rental property in Gilchrist, Texas. Unbeknownst to her, the property was located in the ...
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