Superstorm Sandy Insurance Lawsuit Seeks $3 Million in Damages from Allstate

NEW YORK — A plaintiff who says she suffered severe mold-related illness after nearly six feet of water from Superstorm Sandy inundated her New York home has sued Allstate Insurance Co. for denying her flood insurance claim.

In a lawsuit filed Dec. 30 in U.S. District Court for the Eastern District of New York, Doreen Clay alleges that Allstate acted in bad faith when it rejected her request for coverage, which included the mold damage that Clay says resulted from the “wicking” of floodwaters from the storm.

Clay purchased a flood insurance policy from Allstate with a $189,000 limit …