N.J. Beach Motel Owners Accuse Selective, Broker of Altering Flood Policy

TRENTON, N.J. — Owners of a New Jersey beach motel damaged by Superstorm Sandy have sued Selective Insurance and several others after learning that they were removed as primary beneficiaries of a flood policy issued by the insurer.

Amethyst International Inc. filed the lawsuit in Ocean County Superior Court, accusing the defendants of fraud and misrepresentation for failing to notify them of the change of payee on their policy and refusing to extend coverage for expenses incurred to fix and repair the motel.

According to the complaint, Amethyst owns the Amethyst Beach Hotel in Point Pleasant Beach, N.J., and suffered …