Bloomberg Law
May 26, 2020, 7:34 PM

Pan Am Loses Hurricane Harvey ‘Windstorm’ Insurance Case

David McAfee
David McAfee
Staff Correspondent

Pan Am Equities Inc. won’t recover anything in its insurance coverage case against Lexington Insurance Co. over flooding damage caused by Hurricane Harvey, because a “Windstorm” deductible exceeding the flood damage cost was controlling, rather than the policy’s “Flood” deductible, the Fifth Circuit ruled Tuesday.

Pan Am sued Lexington after Harvey, the named storm that killed 68 people and caused $125 billion in damages, caused flood damage to two office buildings owned by the company. Pan Am filed a claim, but Lexington applied the policy’s “Windstorm and Hail” deductible, as opposed to the “Flood” amount.

After the Texas federal court ...