Texas Commercial Insurance
Property Policy Interpretation
INSURANCE CLAIMS SCENARIO
(Need to prove “Storm” “Lightning”
was the cause of loss)
There is a disagreement as to coverage on the policy that was uploaded as part of this job. There was storm damage sustained to the building/restaurant on the Insureds property. There was damage to the building’s electrical panel boxes with Burnt and melted breakers and burnt and melted electrical buss bars in the panel. Damage to both the walk-in cooler and walk-in freezer, where compressors were fried and grounded. Two of the 20-ton HVAC units had damaged compressors that were fried and grounded, as well as other fried components. Damage the the computerized camera system where components were fried. The main digital LED sign had fried components throughout. There was other kitchen equipment that were damaged with fried components. There were many outlets that had burnt marks, and the cords that were plugged in were melted.
The Insurer says the cause of loss is from damage from a Surge of Power apparently from the Utility Service. The Insurer provides no evidence that the Surge came from the Utility Service. They just claim “Surge Damage” with no further explanation given.
The Insured, and all the inspection reports from Texas licensed electricians, HVAC company personnel, and other contractors is from “Storm” “Lightning” caused from a lightning strike that caused a surge that damaged the electrical panel boxes as well as the rest of the building and equipment. The Insured has lightning strike reports showing lightning in the area, witness sworn statements where witnesses saw lighting hit the actual property, and hitting a parking lot pole. All the damage is consistent with lightning damage as described and shown on and from many case studies from NOAA, NWS, etc. states the cause of damage is from the “Storm” “Lightning.”
1)
Under the CAUSES OF LOSS – SPECIAL FORM (CP 10 30 09 17) I need interpretation of the sections listed below, which are also shown in an attachment to this job. I need all interpretation in reference to “Failure” or “Surge of power,” as well as Storm Damage or Lightning in the following sections for sure. If there are other sections that you are familiar with that pertain to Storm, Weather, Lightning, etc. Please provide that information as well. I need any information, documentation, Texas court case law, etc., dealing with Lightning Strikes/Surge damage on commercial property claims or other claims in general. If there is any case law or other information where a lightning strike must be a certain distance from a building for damage to be considered attributable or the cause of damage, that would be great. Any other case law referencing Storm or Weather-related damages as reason for loss would also be what we are looking for.
B. Exclusions
1.
e.
2.
d.
3.
4.
2)
Does “Failure” or “Surge of power” from artificial source, utility service, or “storm,” “lightning,” etc., influence the payout benefits on BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM (CP 00 30 10 12)
3)
Any information, documentation, or anything else you feel deals with damage caused from Storm or Lightning damage would be beneficial.