Waiver doesn’t protect defendant from recovery for water damage

An insured on the second floor of a 20-story building in New York City suffered damages from a flood emanating from a floor above. In particular, a break in a ‘T’ connection in the sprinkler system on the vacant third floor led to the flood and damaged the floors below. The ensuing water went undetected until a first floor retail tenant notified building management of water coming down into their rental space. After a lengthy period of time, the water was shut off; no water flow alarm was ever sent to the monitoring company and the fire department was not summoned. Stutman Law’s client insured the tenant, and the landlord was protected by a waiver of subrogation within the lease. Stutman Law was able to obtain a substantial six-figure settlement by arguing that the waiver of subrogation was limited in scope and did not extend to the type of insurance policy that was issued by our client.

Posted in Recoveries | Tagged |