Law360, New York (March 14, 2014, 2:43 PM EDT) -- Many property policies contain "all perils" deductibles and/or deductibles for specified perils. Frequently, these deductibles are written as fixed dollar amounts or percentages of the insured value. Insurers may construe these deductible provisions to avoid coverage, which is what Ace American Insurance Company tried to do after Castle Oil Corp. suffered nearly $2.3 million in Superstorm Sandy flood losses. Fortunately for Castle Oil — and for New York policyholders — a New York court in Castle Oil Corp. v. Ace American Insurance Co. recently rejected Ace's argument that the flood deductible in its policy should be calculated based on a percentage of the total value of the property instead of the value actually insured against flood loss....
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