N.J. Couple Sues 3 Insurers for Failing to Pay for Home Destroyed by Superstorm Sandy

TRENTON, N.J. — Three insurance companies have been accused of breach of contract and bad faith in a lawsuit filed by the owners of a Union Beach, N.J., home that was destroyed by Superstorm Sandy.

The lawsuit, filed in Monmouth County Superior Court, alleges that insurers Allstate, American Security and Narragansett Bay all refused to cover damage to the home, despite providing a combined $700,000 in coverage for perils that include windstorm and flood.

John and Patricia Shipleys’ complaint, which on May 30 was removed to U.S. District Court for the District of New Jersey, says that Superstorm Sandy …