Resort Can Sue Insurer for Denying Superstorm Sandy Claim Based on ‘Named Storm’ Deductible, N.J. Judge Rules

TRENTON, N.J. — A federal judge has refused to dismiss an insurance action after determining that the plaintiff presented a plausible case for why a $1 million Named Storm deductible in its commercial policy should not bar coverage of nearly $775,000 in losses blamed on Superstorm Sandy.

Judge Peter G. Sheridan of the U.S. District Court for the District of New Jersey said in the Feb. 26 opinion that in characterizing Sandy as “post-tropical,” plaintiff AFP 104 Corp. easily met its burden of establishing coverage if supporting evidence shows that application of the deductible by Columbia Casualty Co. was improper.