Court limits coverage in WTC owner's policy; Rare clause excludes cover for leased properties.(News)

Byline: DAVE LENCKUS

NEW YORK-In the latest insurance ruling stemming from the destruction of the World Trade Center, a federal judge has barred the complex's owner from tapping its coverage under an unusually constructed policy to fill gaps in the WTC leaseholders' coverage.

Several policyholder lawyers say they have never seen a policy provision structured like the one contained in the policy for the Port Authority of New York and New Jersey but differed over whether the judge correctly interpreted the provision.

Under the Feb. 22 ruling, the Port Authority can file claims for only one of six buildings and a commuter train terminal that were destroyed in the Sept. 11, 2001, terrorist attacks.

The cost of rebuilding the remainder of the complex must be borne by WTC leaseholders' insurance and the leaseholders themselves …