The insureds originally had flood coverage with Allstate.  See Dennis v. Fidelity Nat. Prop. and Cas. Ins. Co., 2010 U.S. Dist. LEXIS 28759 (March 25, 2010).  To reduce their premiums, the insureds requested their agent, Lyons Insurance, Inc., to obtain a new flood insurance policy on their home in May 2007.  The insureds did not submit the required elevation certificate until September 9, 2008, when Lyons finally secured a new flood policy from Fidelity.  Hurricane Ike struck the area two days later on September 11, 2008, resulting in flood damage to the insureds' home.  The insurer denied coverage for flood damage because the 30-day delay period after purchase of the flood policy had not expired. 

   The insureds sued, alleging that Lyons was negligent in failing to properly secure flood insurance on their property.  In moving for summary judgment, Lyons argued that in May 2007, the property was insured by the Allstate flood policy which did not expire until September 30, 2007.  Therefore, the insureds were unable to obtain another flood policy in May 2007.  The insureds then delayed submitting the necessary documentation for a new flood policy until September 2008.  

   The Court the insureds had received notice in 2007 that their Allstate policy would expire on September 30, 2007.   The insureds were also charged with the knowledge of the terms of a Standard Flood Insurance Policy, including the 30-day delay after applying before the policy would be issued. Therefore, any reliance on an agent of Lyons was unreasonable.  Lyons' motion for summary judgment was granted.