Insurer Prevails in N.J. Hurricane Irene Coverage Case, Court Says Water Exclusion Applies to Loss

TRENTON, N.J. — A New Jersey appeals court has upheld an award of summary judgment to an insurer in a Hurricane Irene action, finding the insureds’ loss was caused by flooding, rather than a sewer backup, and is therefore excluded from coverage.

On Feb. 21, the New Jersey Appellate Division found the insurer presented sufficient evidence that a flood in part caused damage to the property and that the water exclusion endorsement applies to the loss.

Park Court Properties owns a property on which Rosa Pen Inc. is a tenant. On Aug. 27, 2011, Hurricane Irene hit landfall and the …