LRG Claims Case Study
International Airport Hurricane Claim
A case study involving an international airport spanning more than 1,400 acres, with 38 insured structures totaling more than 830,000 square feet. An August 2020 hurricane affected every structure. The insurer issued a $65 million range-of-magnitude assessment but initially paid $5 million. The claim ultimately resolved for a documented $53 million settlement.
Case Overview
Executive Summary
In August 2020, a hurricane caused catastrophic damage across an international airport property covering more than 1,400 acres. The insured portfolio included 38 structures totaling more than 830,000 square feet, including airport hangars, a control tower, a terminal, an administration building, and auxiliary facilities supporting airport safety equipment.
Every structure was affected. The documented damage included roofing, exterior, structural-framing, and interior conditions, while some buildings were completely destroyed or displaced from their foundations. The airport retained a mitigation company immediately after the loss to secure the property and reduce additional damage. The claim involved incomplete payment activity, omitted damage, disputed causation, depreciation, code and ordinance issues, business-interruption concerns, scope and repair-method disputes, pricing disagreements, and the complexity of multiple buildings and specialty systems.
LRG Claims provided policyholder representation through property-wide inspections, photographs, moisture readings, expert-report review, material sampling and specification review, invoice and bid-package review, Xactimate estimating, specialty-vendor pricing, proof-of-loss preparation, joint inspections, carrier meetings, and settlement support. The insurer issued a $65 million range-of-magnitude assessment but initially paid $5 million. The claim ultimately resolved for a documented $53 million settlement.
Property and Claim Conditions
The Airport Property, Hurricane Loss, and Initial Claim Challenge
A Large, Multi-Structure International Airport Property
- Property: More than 1,400 acres containing 38 insured structures and more than 830,000 square feet of insured building area.
- Facilities: Airport hangars, a control tower, a terminal, an administration building, and auxiliary buildings supporting airport safety equipment.
- Cause of loss: An August 2020 hurricane affected every insured structure at the property.
- Affected systems: Roofing assemblies, exterior elevations, structural framing, interiors, building materials, and specialty airport components.
- Damage severity: Some structures were completely destroyed or displaced from their foundations.
- Immediate response: The airport retained a mitigation company to secure the property and protect it from additional damage.
A Major Payment Gap and Disputed ACV Methodology
- The insurer inspected the property and issued a $65 million range-of-magnitude assessment, but initially paid $5 million.
- The carrier based payment activity on costs incurred rather than providing a fully priced scope supporting a complete actual-cash-value calculation.
- LRG challenged the methodology and maintained that a scope without pricing did not provide a complete ACV calculation for the covered loss.
- The claim also involved omitted damage, depreciation, disputed causation, code and ordinance considerations, repair-method and valuation disputes, and multiple specialty structures.
- Business-interruption concerns and the airport's need to maintain essential facilities added operational complexity.
LRG Claims' Approach
A Property-Wide Airport Hurricane Claim Documentation Process
LRG followed a structured property insurance claim process focused on inspecting every structure, documenting catastrophic physical damage, reviewing incurred costs and contractor information, developing a comprehensive estimate, and presenting organized support for the airport's property claim.
Inspect Every Structure
LRG inspected the airport property, including hangars, the control tower, terminal, administration building, auxiliary facilities, roofing, exteriors, framing, interiors, and specialty systems.
Document and Verify Damage
LRG documented conditions through photographs, moisture readings, expert reports, building-material samples, material specifications, and joint inspections with carrier representatives and consultants.
Develop the Scope and Estimate
LRG reviewed contractor invoices and bid packages and prepared a comprehensive Xactimate scope and estimate using the appropriate price list and specialty-vendor pricing.
Present, Coordinate, and Negotiate
LRG presented the claim package, exchanged estimating files, coordinated with restoration professionals, building consultants, engineers, general contractors, and specialty vendors, and supported negotiations by telephone, email, and in person.
Claim Timeline
From the Hurricane Loss Through Airport Claim Resolution
Documented Outcome
From a $5 Million Initial Payment to a $53 Million Settlement
The intake documents a $65 million carrier range-of-magnitude assessment and a $5 million initial payment. After LRG's airport-wide inspections, photographs, moisture readings, material review, invoice and bid-package analysis, estimate development, proof-of-loss preparation, joint inspections, vendor and expert coordination, claim presentation, and settlement support, the claim ultimately resolved for $53 million. The documented settlement was $48 million greater than the initial payment and allowed the airport to proceed with necessary repairs.
Why This Case Matters
Airport Hurricane Claims Require Coordinated Documentation Across Diverse and Essential Facilities
An airport loss can involve hangars, terminals, control and administration facilities, public-safety systems, specialty equipment, large roof areas, structural damage, and operational concerns across one interconnected property. A limited payment approach may not reflect the full extent of a catastrophic, multi-structure loss.
LRG Claims assists airports, public entities, institutions, commercial property owners, and other policyholders with hurricane damage claims, commercial property claims, business interruption claims, and disputed or underpaid large-loss matters.
Related Claim Resources
Learn More About Similar Property Claims
These related pages provide additional information about hurricane losses, commercial and institutional properties, business interruption, and other documented LRG Claims case studies.
Managing a Large or Complex Airport Claim?
Get a Free Claim Review From LRG Claims
LRG Claims represents policyholders, not insurance companies. Contact our team to discuss an airport, public infrastructure, institutional, commercial, industrial, multi-location, business-interruption, municipal, or other complex property insurance claim.
Client and insurer identities are withheld. This case study describes the facts and outcome of one property insurance claim based on the documented intake information provided. Every claim is different. Results depend on the policy, cause and extent of damage, available documentation, insurer position, applicable law, and other circumstances. Past results do not guarantee or predict the outcome of another claim. Public adjusting services are regulated by state law. Availability and fee structures vary by state.
