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Apartment owner sues Topa over Hurricane Beryl claim underpayment
The complaint alleges Topa and its claims administrator paid for only one of the eight buildings, while the owner estimated covered replacement cost at $2.6 million and sought appraisal twice.
Hurricane Beryl struck an eight-building apartment complex in Texas, and the owner is suing Topa Insurance Company for what it says is a large underpayment on the storm claim, according to Insurance Business. GKS Enterprises, which operates as Garden Villa Apartments, filed the lawsuit in US District Court for the Southern District of Texas on July 27, 2026. The complaint alleges Topa, a surplus lines carrier, underpaid the claim by more than $2.4 million and that Topa’s claims administrator twice declined the owner’s appraisal demands. Topa is alleged to have insured the property under a $12 million commercial property policy from March 19, 2024 to March 19, 2025. The filing says Beryl hit on July 8, 2024, causing roof damage, siding and elevation damage, and interior water intrusion across multiple buildings, and that the insured reported the loss on August 16, 2024. The complaint says the inspection estimate that followed covered only Building 7, with a replacement cost of $185,412.82, and that in February 2025 the administrator paid $167,771.48 for Building 7’s actual cash value plus mitigation costs while partially denying interior water damage claims for four other buildings. It also alleges the administrator never inspected the other buildings and that the insured submitted a sworn proof of loss on July 24, 2025 for $2,597,658.46 in replacement cost, then demanded appraisal on April 30 and July 31, 2025, which were refused, the filing states.