Flood-Loss Limit Applies to Superstorm Sandy Construction Delay Claim, N.Y. Judge Rules

NEW YORK — A state court judge has ruled that a flood loss aggregate limit in a builders’ risk insurance policy applies to claims for delay-in-completion losses that occurred when Superstorm Sandy damage temporarily halted a developer’s New York City construction project.

New York County Supreme Court Justice Shirley Werner Kornreich said in a June 27 order that because the policy’s $5 million flood limit draws no distinction between coverage of physical and non-physical damage caused by flood, it must be read to apply to “all losses and damages arising” from the event, including downstream financial losses.

In ruling so, …