Superstorm Sandy Plaintiffs Challenge Insurers’ Interpretation of Flood Loss Limitations

NEW YORK — Plaintiffs in the Hurricane Sandy Litigation in New York federal court have filed a brief challenging the defendants’ interpretation of the National Flood Insurance Program’s loss settlement clause.

In a June 10 filing in U.S. District Court for the Eastern District of New York, the plaintiffs argue that insurers are attempting to limit their recovery under the clause and have indicated they will not mediate or resolve claims until they receive evidence of the amount actually spent to repair or replace property damaged by Sandy.

According to the plaintiffs, defense counsel has argued that the insureds are …