Owners of a property damaged in Hurricane Sandy aren’t entitled to reimbursement under the federal flood insurance program for removal of debris from elsewhere that was deposited in their yard, the U.S. Court of Appeals for the Third Circuit has ruled in a case of first impression for federal appellate courts.
The appeals court affirmed a ruling by U.S. District Judge Anne Thompson of the District of New Jersey that found plaintiffs Michael and Geraldine Torre were not entitled to reimbursement of $15,520 they paid to remove debris from outside their home in Mantoloking. Language in their Liberty Mutual policy under the Standard Flood Insurance Program, which covers expenses for removing “nonowned debris that is on or in insured property,” applies to the house but not the entire parcel of land, the court ruled.
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