Policy’s $1 Million Flood Coverage Cap Applies to Debris Removal, N.J. High Court Rules

TRENTON, N.J. — The owner of an apartment complex is not entitled to coverage for debris removal over and above the policy’s $1 million sublimit for flood losses, the New Jersey Supreme Court has ruled, holding that the policy clearly states that the cap will apply even if more than one limit of insurance applies.

On May 25, a majority of the court held that although the policy contains a sublimit for debris removal, that sublimit not constitute a self-contained policy provision outside the application of the $1 million flood limit.

In this appeal, the Court considers coverage under …