Insurer Stiffed HOA On $5M In Connection With Fire Insurance Claim Over Blaze That Left 30 People Homeless: Lawsuit

In Galveston, Texas, The Southeast Texas Record reports:

• Alleging it was paid only half of its stated limits on its insurance policy in following a huge fire last year, a local condominium owners' association has filed suit against its insurer, recent court documents say. The Maravilla Homeowners Association accuses Westchester Surplus Lines Insurance Co. of "failing to attempt in good faith to effectuate a prompt, fair, and equitable settlement" after the plaintiff filed a claim for the four-alarm fire within the Maravilla Resort Condominiums on Galveston's West End on June 3, 2009. [...] The homeowners association asserts the stated limits were $10 million, but Westchester tendered only $5 million. [...] The Southeast Texas Record reported in October that the homeowners association filed suit against two businesses over alleged misconduct and overall negligence in relation to the blaze, which left more than 30 homeless.

Source: Galveston condo owners sue insurer over $5M in fire proceeds.