N.Y. Couple Sues Insurer for Denying Coverage of Toilet Backup Caused by Superstorm Sandy Surge

NEW YORK — Bankers Standard Insurance Co. has been sued for allegedly refusing to cover tens of thousands of dollars worth of damage to a Queens, N.Y., home caused when a basement toilet overflowed during Superstorm Sandy.

In a lawsuit Bankers removed May 3 to the U.S. District Court for the Eastern District of New York, Anthony and Vivian Composto accuses the insurer of bad faith in denying the couple’s claim under a homeowners policy it purchased from Bankers.

According to the Compostos, the policy was in effect during Superstorm Sandy, when a toilet in the finished basement of their …