Insurer Denied Summary Judgment on Supplemental Proof of Loss Issue in Hurricane Coverage Dispute

NEW ORLEANS — A Louisiana federal judge has denied an insurer’s motion for summary judgment on the issue of whether an insured mortgage holder properly submitted a supplemental proof of loss form to support its claim for Hurricane Isaac-related flood damage.

In an Aug. 17 order, Judge Ivan L.R. Lemelle of the U.S. District Court for the Eastern District of Louisiana explained that it is unclear whether the proof of loss form submitted by the property owner, rather than the mortgage holder, is acceptable under the terms of the policy.

Alfred and Rubbie Cotton sued Scottsdale Insurance Co., seeking to …