Superstorm Sandy Storm Surge Damage Deemed ‘Flood-Related’ by N.Y. Federal Judge

NEW YORK — Damage caused by storm surge from Superstorm Sandy is considered flood-related and, therefore, subject to sublimits of all-risk insurance policies issued to two New York nursing homes, a federal judge has ruled.

In a decision awarding summary judgment to Lexington Insurance Co. on claims including breach of contract, Judge Raymond J. Dearie of the U.S. District Court for the Eastern District of New York held that the policies at issue clearly and unambiguously include “storm surge” in terms limiting recovery for flood-related damage to $1 million.

New Sea Crest Healthcare Center and Shore View Nursing Home sued …