N.J. Superstorm Sandy Claims Not Preempted by Flood Insurance Act, Judge Rules

NEWARK, N.J. — Negligent misrepresentation claims against an insurance broker that sold flood coverage for a property destroyed by Superstorm Sandy are not preempted by the National Flood Insurance Act, a federal judge in New Jersey has ruled.

Judge Jose L. Linares of the U.S District Court for the District of New Jersey said Sept. 26 that absent a directive from the 3rd Circuit U.S. Court of Appeals, the plaintiff property owner may pursue state law claims involving misrepresentations in the procurement of flood coverage, unless it becomes apparent through discovery that the claim involves interpretation of the policy.

In …