|
Conditions |
Businessowners Policy (BOP) |
|
Preservation
of Damaged Property |
Duties
in the Event of Loss or Damage |
The pipes of the rooftop cooling system of Seaport Park
Condominium (Seaport) burst on January 12, 2004, allegedly due to freezing
temperatures.
Seaport had purchased a Businessowners Policy effective
September 30, 2013, from Greater New York
Mutual Insurance Company (GNY) providing coverage on the seven-story
condominium apartment building.
A claim was submitted to GNY. Expert adjusters were
retained to inspect the damage and determine the cause of loss. The burst pipes
were believed to be in the interior of the unit and a conclusion could not be
reached. At a meeting of all interested parties, it was agreed that Matco, Seaport’s
contractor, would remove the old tower and install a new one and would store
the old tower for further inspection. Matco, however, destroyed the tower.
GNY denied the claim based upon a condition of the policy
that required Seaport to preserve the damaged property for inspection. Seaport
commenced an action against GNY. The
motion court cited the absence of documentation stating that further inspection
of the tower was needed and any obligation to store the cooling system once it
was removed from the building when it ruled in favor of Seaport. GNY appealed.
The decision was reversed because the insurance contract was
between Seaport and GNY and it required that damaged property be available for
inspection. Agreements between Matco and Seaport and the error on Matco’s part
did not relieve Seaport of that responsibility.
Seaport
Park Condo. v. Greater New York Mut. Ins. Co., 39 A.D.3d 51, 828 N.Y.S.2d 381
(2007)