Westchester Surplus Lines Insurance has reached a settlement with a Florida condominium association in a hurricane claim, three years after the condo claimed damages that insurers said were so inflated that they were termed “outrageous.”
“This matter involves an egregious and overinflated first-party Hurricane Sally insurance claim, where the Defendants seek over $230 million for damages allegedly sustained to the Defendants’ condominium buildings that remain standing and in good condition,” reads the 2023 lawsuit complaint filed by Westchester and 15 other insurers that covered Portofino, one of the largest and best-known high-rise condos on Pensacola Beach.
The settlement agreement, filed in U.S. District Court in Pensacola, is only for Westchester. The terms were not disclosed, and the federal judge in the case has yet to sign off on the agreement. All other insurers named in the lawsuit also must review, the condo association attorney said…