Insurers Cleared In Hotel Damage Deductible Fight

By McCord Pagan (February 12, 2020, 5:36 PM EST) -- Two insurers, including an AIG unit, are not on the hook for about $3.2 million in claimed flood damage at a New Orleans hotel after a Louisiana federal court determined the contractor didn't hit its deductible for a renovation project.

U.S. District Judge Greg G. Guidry on Tuesday sided with Starr Surplus Lines Insurance Co. and American International Group Inc. unit Lexington Insurance Co., finding the deductible for covering damage from August 2017 flooding at The Jung Hotel is about $3.4 million, not $500,000 as the hotel and its contractor argued. General contractor McDonnel Group LLC claimed about $3.2 million in...

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