AIA Recovers Maximum Settlement Due To Broken Pipe Water Damage

broken pipe water damageEleny Couture is an elite dress designer for some of the world’s most recognized names. Broken pipe water damage above Eleny’s 57th Street location affected their work room area.

A considerable amount of Eleny’s fabric that was being used to make dresses were damaged.




The insurance company offered Eleny $12,000 to cover their cost to replace the water damaged fabric. Eleny had difficulty ascertaining the cost of their fabric due to the vast amount they possessed and varying costs. Eleny felt their fabric would cost closer to $30,000. AIA was retained by Eleny to assist with their claim.


AIA obtained a complete copy of Eleny’s policy and discovered the policy they provided was outdated by only a few days prior to the loss. AIA requested the new current policy, which was a vastly different version than what the insurance company was utilizing when making their offer to Eleny. The correct insurance policy contained language that permitted Eleny to claim the actual “Selling” price of any dresses they were working on, but had not completed as a result of the loss.


Eleny’s dresses were pre-sold for prices ranging from $8,000 to $15,000. AIA prepared Eleny’s claim and subsequently negotiated a $275,000 settlement with Eleny’s insurance company.

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