Allstate Says Suit Over $8,800 Superstorm Sandy Flood Claim Belongs in Federal Court

NEW YORK — Allstate Insurance Co. has removed to federal court a lawsuit brought by a New York woman who claims the insurer wrongfully refused to pay for Superstorm Sandy-related damage to a home she owns near New Jersey shore.

In a notice filed May 28, Allstate says the U.S. District Court for the Southern District of New York has jurisdiction to hear the case because it involves a dispute over a flood claim the plaintiff made under a policy written in accordance with the National Flood Insurance Program.

Allstate was sued May 9 in New York County Supreme Court …