Coverage Denial Based on Proof of Loss Triggers Statute of Limitations for Superstorm Sandy Lawsuit, N.J. Judge Rules

CAMDEN, N.J. — A one-year statute of limitations does not necessarily bar plaintiffs in Superstorm Sandy insurance coverage cases from filing cases more than a year after receiving a denial letter from their insurer, a federal judge in New Jersey has ruled.

Judge Noel L. Hillman of the U.S. District Court for the District of New Jersey said in a Dec. 4 opinion that courts weighing similar timeliness arguments have ruled recently that the statute begins to run when an insurer issues a denial based on a valid proof of loss, rather than in response to an adjuster’s report.