Allstate Says Earth Movement Exclusion Bars Coverage of Superstorm Sandy Foundation Damage

NEW YORK — Allstate Insurance Co. is challenging a New York couple’s entitlement to summary judgment on claims that residential foundation damage from Superstorm Sandy is covered under a flood insurance policy issued by the carrier.

In an opposition brief filed March 20 in U.S. District Court for the Eastern District of New York, Allstate argues that even if the plaintiffs are able to avoid dismissal for failure to file a proof of loss, their claim is barred by an earth movement exclusion contained in the flood policy.

Allstate insured the Woodmere, N.Y., home of Bentzion and Danielle Schochet with …