Condo Says Broker’s Negligence Led to Coinsurance Penalties on Superstorm Sandy Claim

NEW YORK — Owners of a luxury waterfront condominium that sustained significant damage during Superstorm Sandy has sued their property manager and insurance brokerage for failing to secure adequate coverage to protect the building against flood losses.

In a complaint filed Aug. 15 in New York County Supreme Court, Oceana Condominium No. Four alleges that it incurred significant coinsurance penalties after it was determined that the building lacked sufficient coverage limits required for policies issued to condominiums under the National Flood Insurance Program.

According to the lawsuit, Oceana was advised by Cooper Square Realty Inc. and TM Ross Insurance Brokerage …