In a recent decision, the US Court of Appeals for the Fifth Circuit affirmed summary judgment for a commercial property insurer in a dispute involving the timing of notice for a hail damage claim. In Gann v. Depositors Insurance Co., No. 25-11291 (5th Cir. Oct. 5, 2026), the policyholder reported a claim after discovering interior water damage in 2022, but its consultant later attributed all of the claimed roof damage to a hailstorm that occurred in 2018. The court concluded that the delay in identifying and reporting the 2018 loss was unreasonable and prejudiced the insurer’s ability to investigate the circumstances of the loss in a timely manner. The decision is an important reminder for policyholders of the need for timely notice under property insurance policies. Such issues can arise, as they did in Gann, even where damage is not immediately apparent, its cause is not initially known, or the cause of loss may implicate a different policy period than the one under which the claim was first made.

The Dispute
The dispute arose from hail damage to the roof of a commercial property in Irving, Texas. After discovering interior water damage, the policyholder reported a claim to the insurer in September 2022, specifying August 9, 2022, as the date of loss. The insurer inspected the property and determined that a portion of the roof had sustained hail-related damage and issued payment.

Reprinted courtesy of Koorosh Talieh, Hunton Andrews Kurth LLP and Torrye Zullo, Hunton Andrews Kurth LLP

Mr. Talieh may be contacted at ktalieh@hunton.com
Ms. Zullo may be contacted at tzullo@hunton.com