Windstorm and Tornado Claims

After Superstorm Sandy blew into Northeast Ohio, an insurance carrier balked at paying more than a token amount to a condominium association for extensive storm damage to the condominium buildings. Rutter & Russin pursued the claim in state court and convinced the carrier that it undervalued the amount of storm damage and did not have enough evidence to rely on the policy exclusions relating to pre-existing damage and faulty construction to avoid coverage. In the end, the carrier agreed to resolve the claim by paying an additional $300,000.

A tornado destroyed a greenhouse resulting in not just a large claim for the damaged property, but also a significant business interruption claim. The insurer questioned whether the claim was excluded by a faulty workmanship exclusion since — in the insurer’s opinion — the winds were not high enough to damage the building so extensively. The insured’s business loss claim threatened to exceed the policy limits, so it was important to get the coverage accepted and the greenhouse rebuilt — with the insurer’s money — as soon as possible. We were brought in to coordinate the claim presentation, assist the insured in providing the insurer with all information needed to protect the carrier’s possible subrogation rights against the supposedly negligent builder, and deal with the insurer’s forensic accounting team. Within six months, the insured received over $33,000,000 in claim payments.