Flood Loss Limit Applies to Claims for Financial Losses, N.Y. Appellate Court Affirms

NEW YORK — A flood loss aggregate limit in a builders’ risk insurance policy applies to claims for delay-in-completion losses that occurred when Superstorm Sandy damage temporarily halted a developer’s New York City construction project, a New York appeals court has affirmed.

In a July 7 opinion, the New York Appellate Division, 1st Department, rejected El-Ad 250 West LLC’s argument that the limit only applied to physical damage and not financial losses. The court awarded Zurich its costs for the appeal.

El-Ad was insured by Zurich under an all-risk policy that was in effect when flood damage from Superstorm Sandy …