Homeowner Sues Insurance Company Over Denied Smoke Damage Claim


U.S. District Court for the Eastern District of New York | Official Website

A homeowner in New York is embroiled in a legal battle with an insurance company over a denied claim following a damaging incident at his residence. Eitan Agagi filed a complaint on December 3, 2025, in the United States District Court for the Eastern District of New York against Hyundai Marine & Fire Insurance Co., Ltd. (U.S. Branch), alleging breach of contract and bad faith.

The case centers around an insurance policy that Agagi had with Hyundai Marine & Fire Insurance Co., which was meant to cover his property located at 118 Colonial Road, Great Neck, New York. On February 10, 2024, while the policy was active, a smoke/puffback incident occurred at Agagi's home, causing significant damage. Despite having paid premiums and adhered to all conditions precedent to filing a claim, Agagi alleges that Hyundai refused to indemnify him for the loss. The plaintiff claims that Hyundai’s denial of coverage was based on an erroneous interpretation of his property's status as either primary or secondary residence due to his work-related absences during weekdays.

Agagi argues that he has consistently maintained the property as his primary residence since 2013 and provided evidence such as regular weekend returns, mail delivery, voter registration, and tax filings from this address. He asserts that temporary absences for work do not alter its status under New York law or increase insurable risks like smoke/puffback damage. Moreover, he contends that Hyundai’s underwriting guidelines are ambiguous regarding such commuting patterns and did not prohibit coverage for owner-occupied homes with temporary weekday absences.

In addition to seeking damages exceeding $150,000 for breach of contract, Agagi accuses Hyundai of acting in bad faith by failing to conduct proper investigations before issuing the policy and by misinterpreting facts post-loss to avoid payment. He claims that Hyundai's actions reflect a broader pattern of denying legitimate claims through frivolous grounds contrary to fact and common sense.

Agagi is represented by Scott E. Agulnick from AGULNICK KREMIN, P.C., who seeks not only compensatory damages but also consequential damages believed to exceed $50,000 due to additional losses incurred from Hyundai's alleged bad faith actions. The case is presided over under Case ID: 2:25-cv-6672.

Source: 225cv06672_Agagi_v_Hyundai_Marine_and_Fire_Insurance_Co_LTD_Complaint_Eastern_District_New_York.pdf

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