Success Story: Commercial Storm Damage Insurance Claim
AIA Helps Warehouse Owner With Inventory ClaimDue To Superstorm Sandy
A&D Trading Corp. purchases a variety of products from overseas and sells them to retail stores throughout the country.
Superstorm Sandy caused 6’ of water to fill their warehouse in downtown Brooklyn.
Concerns
A&D Trading had a business owner’s policy to cover their building, inventory and lost income from numerous perils, except flood. A&D maintained a separate flood policy to cover the warehouse building, but not their inventory. Close to $3,000,000 of inventory was completely destroyed. A&D’s primary insurer denied coverage to the inventory, as loss caused by flood is specifically excluded. A&D’s insurer would cover any wind related damages, as loss caused by wind is covered, but they weren’t able to file a flood damage claim with this company.
Result
Atlantic Insurance Adjusters succeeded in getting A&D’s insurance company to reverse their denial. We negotiated a 40% recovery of the inventory claim, which came to almost $900,000 for A&D. Due to the coverage complexity, and no definitive way to prove the extent of damage the rain water caused to the inventory, a compromise had to be made. This was a very successful settlement AIA made on A&D Trading’s behalf, especially when A&D was initially getting paid $0 for their damaged inventory.