Insurer Files Federal Lawsuit to Avoid Coverage of County Vehicles Damaged by Superstorm Sandy

NEWARK, N.J. — Star Insurance Co. has filed a lawsuit asking a federal judge to declare that it has no obligation to cover a fleet of county-owned vehicles that were damaged by floodwaters from Superstorm Sandy.

The insurer filed the declaratory judgment action July 29 in U.S. District Court for the District of New Jersey, arguing that Hudson County, N.J., officials failed to prove they exhausted a $500,000 self-insured retention before seeking coverage for the damage under a policy purchased from Star.

According to the lawsuit, 63 vehicles and a mobile command unit owned by Hudson County were damaged by …