5th Circ. Revives La. Contractor's $2.7M Flood Coverage Suit

By Eli Flesch (September 27, 2021, 3:14 PM EDT) -- The Fifth Circuit revived a Louisiana-based general contractor's bid for $2.7 million in coverage for a flooded New Orleans hotel, saying the policy language regarding a flood deductible that the contractor's insurers used to deny coverage was ambiguous.

The Fifth Circuit panel sent the McDonnel Group LLC's suit back to Louisiana federal court on Friday. The panel found that Starr Surplus Lines Insurance Co. and AIG unit Lexington Insurance Co. included language in their policies that made it questionable whether the amount of a flood deductible was $3.4 million instead of $500,000.

The decision overturns the findings of U.S. District Judge...

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