Excess Insurer Prevails in Dispute Over Hurricane Damage Claim

NEW ORLEANS - A federal appeals court has rejected an apartment complex consortium's $5.5 million claim against an excess insurer for combined wind and water damage from Hurricane Katrina, ruling that exclusions in the primary policy limited the excess carrier's liability. ARM Properties Management Group v. RSUI Indemnity Co., No. 09-50653 (5th Cir.).

The 5th Circuit panel majority said in reversing a lower court on Nov. 5 that the excess policy written by RSUI Indemnity Co. incorporated both an anti-concurrent causation clause and a water exclusion from the underlying policy issued to ARM Properties Management Group.

On Nov. 19, ARM …