OAKLAND — The landlord of the Ghost Ship warehouse where 36 people died in a fire on Dec. 2 has avoided prosecution, but she’s set to collect at least $3.1 million in insurance payments, according to an insurance document obtained exclusively by this news agency.
Claims Adjusting Group has reserved $3.1 million to pay Chor Ng, who owns the Fruitvale District warehouse and adjacent properties, to cover her property and liability policy. The document indicates she has received more than $670,000 so far, likely to cover her attorney’s fees and facility security costs.
However, Ng’s $6 million liability insurance maximum will likely never make its way to the dozens of victims suing her and other agencies for the deadly fire, one insurance expert says.
“Everything will likely be exhausted long before they go to trial,” said Karl Susman, owner of Susman Insurance Agency and expert insurance witness, who reviewed the Ng document. “And then she personally might declare bankruptcy.”
The insurance document was obtained Tuesday, and on Wednesday Derick Almena, master tenant at the former unpermitted arts collective, and his second-in-command Max Harris pleaded not guilty to 36 counts of involuntary manslaughter. Ng and her family have not been criminally charged in the case, however they are defendants in dozens of civil claims.
The insurance claim document shows two Ghost Ship related claims resulting from the Dec. 2 fire. Ng’s policy covers a block of properties she owns there, from 1305 to 1313 31st Street and 3065 to 3073 International Boulevard.
Ng paid $2,265 this year for $1.6 million of property coverage on the warehouse, according to the record. Her policy included $1 million of basic liability coverage and she also received an extra $5 million. Such a low premium is not unusual for commercial warehouse insurance, Susman said.
“When you think about it what’s going to happen at a warehouse?” he said. “The only real exposure is in the event of something like this happening which is unusual.”
According to the document, the insurer has estimated it will have to pay Ng more than $2.1 million, citing as a description of the claim: “Building intended for warehouse use may have facilitated a Rave or other unintended/unauthorized activity by the tenant.”
Susman said he was “puzzled” why the insurance company was willing to pay out $2.1 million for the building when the total insurance value was only $1.6 million.
The insurance company has already activated Ng’s basic liability coverage of $1 million, according to the record, and has paid more than $670,000 to her already. Susman said that money has likely been spent on attorneys, public relations consultants, warehouse security and other costs.
A judge ordered Ng to hire round-the-clock security at the burned out warehouse and at a debris dump site to secure possible evidence. Her attorneys have been working with public relations consultant Sam Singer since the fire.
Singer said he would check with Ng’s attorneys on Wednesday to see if they had a comment on the insurance revelations.
Check back for updates.
