STORY FROM: Superstorm Sandy Insurance Litigation

SFIP’s Earth Movement Exclusion Bars Coverage for Foundation Damage, N.Y. Federal Judge Says

SYRACUSE, N.Y. — A New York federal judge has refused to reconsider his award of summary judgment to an insurer in a flood coverage case, reiterating that the Standard Flood Insurance Policy’s “earth movement” exclusion bars coverage for damage caused to the foundation of the policyholder’s home.

On March 14, Senior Judge Frederick J. Scullin Jr. of the U.S. District Court for the Northern District of New York rejected the policyholder’s argument that the layer of sand beneath her home was part of the foundation and therefore the exclusion does not apply.

Marie Clifford’s home was damaged due to a ...

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