Allstate Sued for ‘Misplaced’ Reliance on Engineer’s Superstorm Sandy Damage Report

NEW YORK — A Staten Island, N.Y., woman has sued Allstate Insurance Group and its affiliates for what she claims is a coverage shortfall of nearly $600,000 for damage caused to her home by Superstorm Sandy.

Deborah O’Keefe filed the complaint in Richmond County Supreme Court, accusing Allstate of relying on a deficient engineering report that categorized the Sandy-related damage to her home as “cosmetic” in nature and grossly underestimating the value of her claim.

O’Keefe sought coverage for her loss under deluxe homeowner’s and flood policies she purchased from Allstate and was paid nearly $57,000 for damage to her …