Bank’s Lawsuit Says Insurer Changed Policy to Dodge Superstorm Sandy Flood Claim

CAMDEN, N.J. — A Philadelphia bank that held the mortgage on a New Jersey home has accused High Point Preferred Insurance Co. of changing the policy period for flood coverage on the property in what the bank says was a deliberate attempt to avoid paying for losses caused by Superstorm Sandy.

In a lawsuit filed Dec. 6 in U.S. District Court for the District of New Jersey, Prudential Savings Bank alleges that High Point wrongfully denied coverage for the flood damage by resetting the policy period to begin after the insured sustained Sandy-related losses.

The subject policy, issued on a …