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Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Regarding the check from the flood insurance and the same situation

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Regarding the check from the flood insurance and the same situation I just spoke to you about, I had a commercial homeowners policy for rental reimbursement up to $20,000 on my property. The flood insurance says they don’t cover rental reimbursement and the homeowners says it does not cover rental reimbursement because of a flood. I feel because of the delay in issuing a check one of these companies should cover the rental loss. My homeowners called me a few weeks ago and said they were sending my case for review, but said would not cover rental reimbursement. I still did not here or receive anything from them. Just the fact that I am left with no funds to repair any damage for such a long time should leave them liable for rent loss. Would I be correct in a court of law. Thank You.


Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification


A typical homeowners policy would not cover sucha damages,


Business Income Insurance is essential insurance protection that many owners refer to as loss of rental income.

Most property owners will insure to their annual gross rental income, however your Business Income limit should be sufficient to replace your profit (or loss) plus continuing operating expenses for the entire period of restoration and some additional time for lease up.

Business Income coverage is normally written for a specified limit or in some cases on an actual loss sustained basis. It is important to note that most policies written on an actual loss sustained basis limit coverage to a period of 12 months, which may not be sufficient for larger properties in the event of a catastrophic loss


If you did not have landlords insurance or business income insurance,


you will have a hard time getting your loss covered, however it will depend on the language of the policy,


if their is anything in the policy that states business income is covered,


you can win in court.

Customer: replied 4 years ago.

I have a policy with Lloyds of London that has coverage D Fair Rental Value $20,000 on the cover page. There is a small paragraph that discusses section D in the policy and it elimanates coverage for any non covered peril such as flood. But as I stated this would be because of their inaction.

If you wish to take action against them for their delay, that should be considered, however it is not clear the policy would cover rental income loss.
Customer: replied 4 years ago.

I spoke to an agent and he said for me to fax in my leases, but he said that if they determine the loss was from flood then there would be no coverage. I have never heard back from them.

I would consider sending them a letter threatening legal action if they do not respond within the next week, if the flood clause is in the policy, be aware you will have a hard case in court.
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