Owners of hurricane-damaged homes have brought a putative class action in federal court in Newark alleging that their flood insurance carriers are short-changing them by calling their first floors basements.
The plaintiffs in Donnelly v. New Jersey Re-Insurance Co., 12-cv-7629, allege that claims for damage caused by Hurricane Sandy and Hurricane Irene under “write your own” flood insurance policies, issued by private companies and underwritten by the Federal Emergency Management Agency, are being denied due to misapplication of policy language.
