Excess Insurers Sue NYC Building Owner Over Coverage of Superstorm Sandy Flood Damage

NEW YORK — Two insurance companies that provided $50 million in flood coverage for a New York City office building have asked a federal court to decide whether they are obligated to pay for damage to the building caused by Superstorm Sandy.

In a lawsuit filed May 17 in U.S. District Court for the Southern District of New York, Aspen Specialty Insurance Co. and Landmark American Insurance Co. claim that coverage under their policies is triggered only if their insured, 4 NYP Ventures, can demonstrate that its Sandy-related flood losses exceed $69.2 million. That figure — combination of $50 million …