Sandy-Damaged Amtrak Tunnels Subject to $125 Million Flood Sublimit, 2nd Cir. Affirms

NEW YORK — Flood damage sustained by Amtrak tunnels during Superstorm Sandy is subject to the $125 million flood sublimit in its insurance policies, a federal appeals court has affirmed, holding that the inundation of seawater resulting from a storm surge is a “flood” as defined by the policies.

However, in an Aug. 31 opinion, the 2nd Circuit U.S. Court of Appeals further held that the trial court prematurely granted the insurers summary judgment on the issue of whether Amtrak may seek coverage under the policies’ Demolition and Increased Cost of Construction (DICC) clause.

The National Railroad Passenger Corp. (Amtrak) …