16500 Captiva LLC v. QBE Specialty Insurance Company

Summary

The United States District Court for the Middle District of Florida resolves a dispute over how a $200,000 windstorm deductible applies under an insurance policy after Hurricane Ian damage. The court holds that the deductible must be subtracted from the loss payable under the policy after applying coverage limits, rather than from the total uncapped loss. The court denies Captiva’s motion for summary judgment, grants QBE’s cross-motion, and directs the Clerk to close the case.

Holdings

1. Under the policy's plain language, the $200,000 windstorm deductible must be subtracted from the amount of loss payable under the applicable coverages after applying the policy limits, not from the uncapped total loss.
2. The deductible provision is not ambiguous, and applying it to the capped loss payable does not render the coverage illusory.

Questions Presented

1. Whether the policy's $200,000 windstorm deductible must be subtracted from the total loss before applying policy limits or from the loss payable after applying the policy's sublimits.
2. Whether the policy's deductible provision is ambiguous or provides illusory coverage because applying the deductible to the capped loss may prevent the insured from recovering the full stated policy limits.

Disposition

other