Allstate Sues Long Island Power Co. Over Fire Loss During Superstorm Sandy

NEW YORK — Allstate Insurance Co. has filed a subrogation action against Long Island Power Authority (LIPA), seeking recovery of more than $300,000 the insurer paid a New York couple after fire damaged their home during Superstorm Sandy.

The Jan. 21 complaint in U.S. District Court for the Eastern District of New York alleges that LIPA was negligent in failing to maintain, service and inspect wires and power lines that provided electricity to the residence. Allstate’s lawsuit says that as a result of the alleged negligence, a malfunction or “short” in the electrical system occurred at Lawrence and Barbara Dooling’s …