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A federal district court in New York has ruled that coverage was not available for a generator located in the basement of a building that was flooded by Superstorm Sandy where the policy covered only a specified location, identified as the 33rd floor of the building. The district court also dismissed the insured’s bad faith claim against the insurer, explaining that New York law did not recognize it and that bad faith could not be shown when the insurer had arguable support for a denial, as the insurer did here.

The Case

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