STORY FROM: Superstorm Sandy Insurance Litigation

FEMA Flood Zone Exclusion Ambiguous, N.Y. Appellate Court Rules in Sandy Coverage Dispute

NEW YORK — A New York appellate court has upheld a denial of cross-motions for summary judgment in a Superstorm Sandy flood damage action, finding the policy exclusion concerning FEMA flood zones is ambiguous, requiring the admission of extrinsic evidence.

On April 13, the New York Appellate Division, 1st Department, agreed with the trial court that there is a question as to whether the damaged property was located in a flood zone that was excluded from coverage.

Defendant Nova Casualty Co. provided plaintiff Heartland Brewery Inc. with property and casualty coverage for several of its premises throughout New York City. ...

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