NY homeowner sues insurance company over denied smoke damage claim


Judge Sanket Bulsara of the U.S. District Court for the Eastern District of New York | US Senate Judiciary Committee (Wikipedia Commons)

A New York homeowner has filed a lawsuit against an insurance provider, alleging improper denial of coverage following a property damage incident. The complaint asserts that the insurer failed to honor the terms of a homeowner’s policy after damage occurred at the insured residence.

The plaintiff, Eitan Agagi, held an insurance policy covering his property at 118 Colonial Road in Great Neck, New York. According to the complaint, a smoke or puffback incident caused damage to the home while the policy was in effect. Agagi alleges that he complied with all policy requirements and paid all required premiums, yet the insurer declined to cover the loss.

The lawsuit states that the denial was based on the insurer’s conclusion that the property did not qualify as the plaintiff’s primary residence due to his weekday work-related absences. Agagi disputes that characterization, asserting that he has maintained the home as his primary residence since 2013. He cites factors including regular weekend occupancy, receipt of mail, voter registration, and tax filings associated with the address.

Agagi further contends that temporary absences for employment purposes do not change a property’s classification as a primary residence under New York law and do not increase the risk of smoke-related damage. The complaint also alleges that the insurer’s underwriting guidelines do not clearly exclude coverage for owner-occupied homes with such commuting arrangements.

In addition to alleging breach of contract, the lawsuit asserts bad faith, claiming the insurer failed to adequately investigate the claim and relied on disputed interpretations of the facts to deny coverage. Agagi seeks damages exceeding $150,000 for the alleged contract breach, as well as consequential damages exceeding $50,000.

The plaintiff is represented by attorneys Scott E. Agulnick of Agulnick Kremin, P.C. The case was filed in the United States District Court for the Eastern District of New York under Case ID 2:25-cv-6672.

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