N.Y. Judge: Coverage Unavailable for Generator Destroyed by Superstorm Sandy Flood

NEW YORK — A federal judge has dismissed a lawsuit filed against Aspen American Insurance Co. for its refusal to pay a $2.2 million claim for coverage of a power generator destroyed by Superstorm Sandy floodwaters.

Judge Robert W. Sweet of the U.S. District Court for the Southern District of New York ruled Dec. 31 that the basement where financial firm Jane Street Holding’s generator was located is not considered a “covered location” under the terms of a property and inline marine policy issued by Aspen.

The Aspen policy provided Jane Street coverage for three areas of damages, including $10 …