Do “surface waters” covered by property flood insurance include rainwater that accumulated on an enclosed roof one or more stories above the ground?
The landlord and operator of a suburban Massachusetts hospital disagree with their insurers on the answer to that question. Courts are also having some difficulty.
A ruling by a federal district court favoring the insurers is under appeal before the First Circuit Court of Appeals, which is questioning the district court’s ruling but wants help from the top state court to proceed.
The final answer will determine whether hospital landlord Medical Properties Trust, Inc. (MPT) and hospital operator Steward Health Care System are subject to coverage