Landlord Didn't Notify Insurance Company of Loss on Time

April 1, 1993

LVT Number: 6839

Facts: In June 1989, tenant's property was damaged by a severe rainstorm. Tenant then withheld rent. Landlord sued to evict tenant for nonpayment; tenant in turn sued landlord for damages. Both cases were settled. Tenant moved out, and landlord gave tenant a $14,000 rent abatement. In September 1989, landlord notified its insurer of tenant's claim for property damage. The insurer refused to pay, and landlord sued. Court: Landlord loses. An insured must notify its insurer of any loss within a reasonable time. Landlord's three-month delay here wasn't reasonable.

Facts: In June 1989, tenant's property was damaged by a severe rainstorm. Tenant then withheld rent. Landlord sued to evict tenant for nonpayment; tenant in turn sued landlord for damages. Both cases were settled. Tenant moved out, and landlord gave tenant a $14,000 rent abatement. In September 1989, landlord notified its insurer of tenant's claim for property damage. The insurer refused to pay, and landlord sued. Court: Landlord loses. An insured must notify its insurer of any loss within a reasonable time. Landlord's three-month delay here wasn't reasonable. Furthermore, the delay interfered with the insurer's ability to investigate the circumstances of the loss and eliminated the insurance company's chance of defeating tenant's claim.

Fifth & Twelfth Associates, Inc. v. National Casualty Company: NYLJ, p. 31, col. 2 (3/8/93) (Civ. Ct. Kings; Friedman, J)

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