Starr Surplus Lines wants no part of a copper-theft claim, telling a federal judge its insured left a Georgia strip mall exposed.
The carrier filed for declaratory judgment in the Southern District of New York on May 22, 2026, suing Royal Capital Development, the owner of the Northlake Station Shopping Center in Tucker, Georgia. Starr wants the court to confirm it owes nothing for a July 23, 2024 theft, or, if coverage exists, to cap the payout at $250,000 over a $25,000 deductible.
According to the complaint, an unknown person or persons removed a metal door from its hinges, walked into a vacant tenant space, and took copper piping, electrical wiring, and electrical panels. The on-site security guards filed a report that captured the scene in their own words: "Made rounds and Scan Tour throughout the property. Back Doors at the Old Baileys damaged. Thefts Broke In. Robb the building of Cooper Etc'. Doors need repairs. All' Else seems ok from my observation thus far [sic]."
Royal gave notice of the loss to Starr on September 19, 2024. Starr says it hired McLarens and JS Held to investigate and then denied the claim on two grounds: the building was vacant, and Royal had not met the policy's Vacant Property Endorsement.
The endorsement calls a building vacant when "75% or more of its square footage is either i) not rented or legally occupied or ii) not used to conduct customary operations." Starr's numbers, pleaded in the complaint: the building is about 146,210 square feet, only one of six tenant spaces was occupied on the day of the loss and for the 30 days before it, and that occupied space ran about 25,000 square feet. Result, roughly 82.9% outside the threshold.
There is a carve-out for construction and renovation, but only if work is "actively being performed" and the insured or its representatives are on site "at least 20 hours a week." Starr alleges nothing of the kind was happening.
That, the carrier says, kicks in the endorsement's six conditions for coverage at any building vacant more than 30 days running. The complaint hits two.
The burglary alarm. The endorsement requires that "all locks and fire or burglary alarm systems were fully activated and operational at all times" and able to signal an outside central station or a fire or police station. Starr says Royal told it by email on March 12, 2025: "[o]ther than onsite security, there's no burglary alarm in place."
The daily inspections. The endorsement requires daily inspections with written reports covering the building's location, inside temperature, any damage or vandalism, and the state of protective systems. Starr says Royal produced reports for July 12, 13, 14, 16, 17, 18, 21, 22 and 23 of 2024, with nothing for July 15, 19 or 20. The reports that did exist, Starr alleges, never recorded inside temperature; the complaint says Royal told the carrier it had "no documents or information detailing" it. All but one report described the inspection as an "Exterior Patrol" of the shopping center. Starr says it told Royal in writing more than once that "it appears that the daily inspections were limited to patrolling the parking lot," and that Royal did not push back.
If a judge disagrees and finds coverage, Starr has a backup. The policy carries a $25,000 property damage deductible and a $250,000 sublimit for theft at vacant insured locations, with another $250,000 sublimit for vandalism and malicious mischief.
Venue is set by the policy itself, which says any suit against the carrier "must be brought solely and exclusively in a New York state court or a federal district court sitting within the State of New York," under New York law.
The allegations have not been tested in court. Royal has not yet filed a response, and no court has ruled.
