N.J. Resort Sues Insurer for Using Hurricane Deductible to Deny Superstorm Sandy Claim

TRENTON, N.J. — The owner of a New Jersey resort that sustained property damage and business losses caused by Superstorm Sandy has sued Columbia Casualty Co. for denying its claim based on limits of a named storm deductible included in the resort’s insurance policy.

AFP 104 filed the lawsuit in Monmouth County Superior Court, alleging that Columbia’s decision to deny the damage claim violated an order by New Jersey’s governor that prohibits insurers from applying mandatory or optional hurricane deductibles to Sandy-related insurance claims.

AFP 104 owns and operates the Ocean Place Resort and Spa, which sustained approximately $800,000 in …