STORY FROM: Superstorm Sandy Insurance Litigation

Policy’s One-Year Limitations Period Bars Superstorm Sandy Coverage Action

NEWARK, N.J. — Breach of contract and consumer fraud claims asserted against an insurer in a Superstorm Sandy coverage action are time-barred pursuant to the policy’s one-year limitations period, a New Jersey federal judge has ruled, holding that the insurer’s unequivocal denial of coverage triggered the limitations period.

In a Jan. 18 order, Senior Judge William H. Walls awarded the insurer summary judgment, ruling that a letter sent by the insurer to the policyholders following their claim clearly stated that coverage for flood damage is excluded under the policy terms.

Defendant Liberty Mutual issued a homeowner’s policy insuring Robert and ...

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