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NY Flood Exclusion Case Could Be Hurdle For Sandy Coverage

Law360, New York (September 19, 2014, 5:40 PM EDT) -- A New York state judge on Thursday said insurers can enforce flood exclusion provisions in policies regardless of any other cause or event that contributes to a loss, a ruling with possible implications for homeowners claiming Hurricane Sandy property damage was caused mainly by wind.

In an order dismissing a suit filed by strip mall owner Provencal LLC against Tower Insurance Co., Justice Robert J. Berlinger said flood damage caused by the collapse of a retaining wall across from the property was excluded from coverage under Provencal's “all risk” policy. Justice Berlinger said Provencal’s policy excludes any loss caused directly or...

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