Property Owner Says Insurer Canceled Policy in Retaliation for Superstorm Sandy Lawsuit

NEW YORK — The owner of a New York beach rental property has accused Canopius US Insurance Inc. of intimidation and bad faith for denying most of a Superstorm Sandy claim and later canceling the plaintiff’s policy when it learned of their intent to sue over the coverage decision.

In a lawsuit filed Aug. 1 in Queens County Supreme Court, Cashew Holdings LLC says Canopius paid just $19,000 for Sandy-related damage to Cashew’s Rockaway Beach, N.Y., rental, then informed the insured it was canceling coverage for the same reason it refused to pay the entire $210,000 allegedly needed to restore …