Insurer, N.J. Broker Sued over Coverage of Contents Damaged by Superstorm Sandy

NEWARK, N.J. — An insurer and agency that added a contents coverage endorsement to a New Jersey couple’s flood insurance policy have been sued for refusing to pay for personal property damaged during Superstorm Sandy.

The lawsuit, removed April 5 to the U.S. District Court for the District of New Jersey, says that neither Selective Insurance Co. nor the agency that sold the policy informed the couple they had nine days from the date it was issued to pay for the endorsement in order to bind coverage.

Instead, the lawsuit alleges, Selective denied the couple’s claim for contents coverage after …