A Miami Beach hotel is taking its insurer to court over Hurricane Irma damage, claiming bad faith after appraisers awarded far more than the carrier paid.
Savoy Hotel Partners filed a suit against Rockhill Insurance Company on January 16, 2026, in the US District Court for the Southern District of Florida. The lawsuit accuses the Ohio-incorporated insurer of dragging its feet, lowballing damages, and misrepresenting policy terms in the aftermath of one of the Atlantic's most powerful storms on record.
The dispute traces back to September 10, 2017, when Hurricane Irma struck South Florida. The storm had reached Category 5 intensity days earlier, packing sustained winds of 185 miles per hour. For the Savoy Hotel on Ocean Drive, the damage was extensive: blown-in doors and windows, roof and balcony damage, water intrusion throughout both buildings, damaged concrete tie beams, and harm to interior finishes across approximately 75 guest rooms.
What followed, according to the lawsuit, was a claims process marked by delays and disputes.
The hotel operator alleges that Rockhill's engineering firm, ProNet, waited a full month before inspecting the property and then dismissed most of the damage as pre-existing. This finding came despite Rockhill's own underwriters having previously removed a pre-existing damage exclusion after confirming the property was in good condition, the lawsuit states.
The carrier's consultants allegedly refused to produce a detailed damage estimate, taking the position that losses were so minor they would not exceed the deductible of roughly $105,000. The hotel's forensic accountant, meanwhile, pegged business interruption losses alone at nearly $8.9 million through September 30, 2018, well beyond the policy's $3.35 million limit for such claims.
The tension escalated when Rockhill allegedly pressured the hotel to reopen quickly or risk losing coverage for failing to mitigate losses. The lawsuit contends this forced a premature reopening that caused additional damage, as unacknowledged hurricane damage to the roof, balconies, and exterior facade allowed continued water intrusion.
Years of dispute ultimately landed the matter before an appraisal panel, which ruled in the hotel's favor in late 2024. The panel awarded $6.39 million for building damage, $1.32 million for incurred costs, $233,622.94 for damaged business property, and between $4.35 million and $4.82 million for lost income, depending on the application of a 180-day Extended Period of Indemnity.
The policyholder had filed a Civil Remedy Notice in November 2020, a required step before pursuing bad faith claims under Florida law. The lawsuit alleges Rockhill failed to cure within 60 days.
The case remains in its early stages, with no court ruling yet on the merits. Rockhill Insurance Company has not yet responded to the allegations in court filings.
For insurers handling legacy hurricane claims, the lawsuit offers a pointed reminder: appraisal awards that dwarf initial payments can become central evidence in bad faith litigation.
