MZM Real Estate Corp. v. Tower Ins. Co.

MCWG Decisions, 2017

MZM Real Estate Corp. v. Tower Ins. Co. of N.Y., 2017 N.Y. Slip Op. 30691(U), 2017 WL 1330494, 2017 N.Y. Misc. LEXIS 1292 (Sup. Ct. [N.Y. Co.] April 7, 2017)

In this case, the Insured sued to enforce an appraisal award arising out of Superstorm Sandy.  The parties disagreed on the extent of wind damage from the storm, and as a result, an appraisal was demanded by the Insured.  The appraisal began about a year after the loss; however, the process was not concluded until over two years after the loss.  Once the appraisal award was issued, MCWG client, Tower Ins. Co. of N.Y. ("Tower"),  rejected it because the award included flood damage, which the insurance policy excluded from coverage. The award also had other defects that prevented Tower from applying the Policy's provisions to it.  Tower also rejected the award because the Insured's appraiser was not impartial.