Federal Court in Texas: No Business Interruption Coverage for Insured’s Reduced Operations After Ike
Posted on January 24th, 2012
In , the U.S. District Court for the Southern District of Texas granted summary judgment in favor of a commercial property insurer in an action brought by an insured motel owner for wrongful denial of a business interruption claim arising from property damage caused by Hurricane Ike. The Court held that the policy did not provide coverage for the reduced business operations experienced by the policyholder.
H&H Hospitality L.L.C., the owner/operator of a motel located in Spring, Texas, was the named insured on a commercial property insurance policy issued by Discover Specialty Insurance Co. In September 2008, Hurricane Ike damaged the hotel, rendering approximately 40 rooms unrentable, but other rooms remained rentable and were rented following the storm.
Tags: Texas, Texas No
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