Insured’s Failure to Substantiate Claim With Documentation Bars Coverage for Hurricane Damage, 5th Cir. Affirms

NEW ORLEANS — An insurer properly denied coverage for Hurricane Isaac damages because the policyholder failed to submit any substantiating documentation or explanation to support its claim, as required by the Standard Flood Insurance Policy, a federal appeals court has affirmed.

In a Jan. 8 order, the 5th Circuit U.S. Court of Appeals explained that the policyholder’s failure to substantiate and justify the amount of its claim constitutes a failure to comply with the SFIP.

Construction Funding LLC filed a flood insurance claim under its SFIP issued by Fidelity National Indemnity Insurance Co. after Hurricane Isaac struck southeastern Louisiana …