‘Denial Letter’ Did Not Trigger Statute of Limitations, N.J. Federal Judge Rules in Sandy Coverage Case

CAMDEN, N.J. — An insurer’s letter issued in response to a claim for Superstorm Sandy damages did not constitute an unequivocal denial of coverage and, as such, the policy’s one-year statute of limitations for initiating a lawsuit against the insurer was not triggered, a New Jersey federal judge has ruled.

On July 17, Judge Robert B. Kugler of the U.S. District Court for the District of New Jersey concluded that the letter was unclear as to whether the policyholders’ wind damage would be covered and therefore was not an unambiguous denial of their claim.

Joseph and Lisa Liguori’s residential property …