N.Y. Residents Sue Nationwide for Coverage of Superstorm Sandy-Related Sump Pump Overflow

NEW YORK — A New York couple has sued Nationwide Mutual Fire Insurance Co. for refusing to cover damage to their basement that occurred when a sump pump overflowed during Superstorm Sandy.

Kevin and Annamarie Kay filed their complaint in Nassau County Supreme Court, accusing Nationwide of admittedly breaking ranks with other insurers and refusing to offer coverage for Sandy-related sewer backups under homeowners’ policies.

The Kays allege that they suffered substantial water damage in their basement during Sandy as a result of overflow from a sump pump well in their home. They immediately submitted a claim to Nationwide under …