N.Y. Company in Storm Surge Zone Sues Insurer Over Denial of Superstorm Sandy Sewage Backup Claim

NEW YORK — A Brooklyn, N.Y.-based business has sued Everest National Insurance Co. after the insurer denied its claim for sewage backup that occurred during Superstorm Sandy.

A.O.J. Management Corp.’s Aug. 12 lawsuit in U.S. District Court for the Eastern District of New York accuses Everest National of wrongfully denying the claim based on a determination that the damaged property was located in a Storm Surge Inundation Zone designated by FEMA.

According to the complaint, a “torrent of water ‘black with excrement and debris’” backed up through a toilet located in A.O.J.’s building during Superstorm Sandy, causing extensive damage. Although …