Madoff investors who believe they are without any remedy to recover their losses should look to their homeowner’s insurance to determine if they are covered by the Madoff fraud.
Some homeowner’s policies contain a provision which covers the homeowner from loss of money, securities or properties that results from fraud, typically defined as an intentional act by someone other than the homeowner designed to induce the homeowner to part with something of value.
At least one suit has been brought under such a policy against AIG in California. As investors check their own policies, more suits may follow.
For more information contact us at 212-509-6544 or 973-559-5566.
