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Alley Theatre v. Hanover Insurance Co.

Court: SD Tx  01/31/2020  District Court Issues Summary Judgment Split Decision in Hurricane Harvey Dispute

The district court found that the insured's business income loss was not capped by the policy's flood endorsement limit, but as flood was the proximate cause of a sprinkler-system leak, that damage was subject to the flood endorsement limit. Moreover, the court held that the Named Storm Deductible Endorsement did not create a separate peril, so the flood endorsement limit still applied to flood damage, even if caused by a named storm, as the fact that the storm had a name did not alter the flood coverage.

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