Real Estate Investment Firm Loses Bid for COVID-19 Coverage in N.Y.
October 25, 2021
NEW YORK — A New York federal judge has dismissed a real estate investment trust’s COVID-19 coverage action against Westport Insurance Corp., ruling it failed to allege “physical loss or damage” to any of its insured properties, as required by the policy.
In an Oct. 21 order, Judge Jesse M. Furman of the U.S. District Court for the Southern District of New York rejected Spirit Realty Capital Inc.’s argument that the presence of COVID-19 is enough to trigger coverage, because the virus does not render a property uninhabitable.
Spirit holds ownership interests in approximately 2,000 commercial properties throughout the …