Miami Hotel Owners Not Covered for COVID-19 Losses, N.Y. Federal Judge Rules

NEW YORK — The owners of a Miami hotel and condominium complex cannot recover COVID-19 business interruption losses from National Surety Corp. because they did not allege “direct physical loss or damage” to insured property as required by the policy, a New York federal judge has ruled.

In an Oct. 1 order, Judge Valerie Caproni of the U.S. District Court for the Southern District of New York explained that Abbey Hotel Acquisition, LLC, Setai Hotel Acquisition LLC, Setai Resort & Residence Condominium Association Inc., and Setai Valet Services, LLC did not plead “a distinct, demonstrable, physical alteration” of property.

Plaintiffs …