Fidelity National Sued for Canceling, Reissuing Policies After Superstorm Sandy Claim

NEW YORK — A federal lawsuit accuses Fidelity National Property and Casualty Insurance Co. of canceling flood policies covering seven New York high-rises after the buildings were severely damaged by Superstorm Sandy.

Dayton Towers Corp. filed the complaint Nov. 21 in U.S. District Court for the Eastern District of New York, further alleging that, upon cancellation, Fidelity reissued new policies with significantly lower coverage limits than the original agreements provided.

Dayton owns seven residential buildings in The Rockaways section of Queens. The buildings are home to more than 1,700 families and sustained approximately $12 million in damage as a result …