Policy Assignee’s Claims Against WYO Flood Insurer Preempted, Tenn. Federal Judge Rules

NASHVILLE, Tenn. — Claims asserted against a Write Your Own flood insurer by a policy assignee are preempted by the National Flood Insurance Act, a Tennessee federal judge has ruled in a Superstorm Sandy coverage action.

On Sept. 20, Judge Aleta Trauger of the U.S. District Court for the Middle District of Tennessee held that the preemptive effect is not limited to claims made by policyholders.

D&S Remodelers Inc. contracted with the Foundry at Hunters Point Condominiums to perform a large-scale Superstorm-Sandy related repair project over the course of several years. According to D&S, Foundry contractually “assigned to D&S the …