SAN FRANCISCO—An insurance company is suing the new owners of a fire-damaged San Francisco building  over allegations that its policy covering loss of rental income from the structure fire was with the previous owner.

HDI Global Insurance Company filed a lawsuit in the Northern District of California District Court, San Francisco Division on Jan. 13 against Elizabeth Court LP, Washington Square Assets LLC and Russell B. Flynn. 

The building at 1500-1504 McAllister St. was damaged in a fire on Jan. 31, 2015, according to the lawsuit. The building's owner, William R. Hahn III, filed a claim with HDI shortly after the fire. HDI alleges that at the time of the fire the building was held in escrow as part of a written purchase agreement between Hahn and the defendants.

HDI said in the suit that it had paid more than $268,000 for loss of rents as of December and continues to pay more than $24,000 under a reservation of rights.  HDI alleges, however, that it is not responsible for paying for loss of rent beyond the March 13, 2015 sale date of the building to the defendants. The company also alleges that it is entitled to reimbursement from the defendants for any amount paid after the sale date.

In addition to a definitive ruling as to whether it owes any money beyond that which was paid to Hahn, HDI is seeking reimbursement for any money paid to the defendants after the sale of the building as well as any further relief the court deems necessary. Meka Moore and Jennifer Revitz of Selman Breitman LLP are representing HDI.

Northern District of California District Court Case number 316-cv-00210-VC

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