Policy Doesn't Cover Cost of Replacing Gas Distribution System

LVT Number: 16644

Facts: Landlord cooperative corporation asked its insurer to indemnify it for the cost of replacing a gas distribution system under an ''all risks'' policy. The insurer then sued landlord and asked the court to rule on whether replacement of the gas distribution system was covered. The insurer claimed that it had no obligation to cover the cost of replacing the system. The insurance policy didn't cover losses based on deterioration of a building system. Court: Insurer wins.

Facts: Landlord cooperative corporation asked its insurer to indemnify it for the cost of replacing a gas distribution system under an ''all risks'' policy. The insurer then sued landlord and asked the court to rule on whether replacement of the gas distribution system was covered. The insurer claimed that it had no obligation to cover the cost of replacing the system. The insurance policy didn't cover losses based on deterioration of a building system. Court: Insurer wins. The system was replaced after ordinary deterioration and, so, wasn't covered under the building's insurance policy.

St. Paul Fire and Marine Ins. Co. v. 111 Tenants Corp.: NYLJ, 6/5/03, p. 29, col. 1 (S.D.N.Y.; Lynch, J)