Co-Op Owners Sue Standard Fire, Broker over Interpretation of Superstorm Sandy ‘Basement’ Claim

NEW YORK — Two New York residents have sued an insurance broker and flood insurer after coverage for their Superstorm Sandy contents loss was denied as having occurred in the basement of their residence.

Jan Allen Reiner and Alice C. Moore sued The Standard Fire Insurance Co. in U.S. District Court for the Southern District of New York on Aug. 23, alleging that the insurer refused to cover the damage despite acknowledging for more than 20 years that the covered premises has no basement.

The plaintiffs maintain that the flood policy covering their New York City co-op indicated year after …