National Flood Insurance Act One-Year Statute of Limitations
Strictly Applies to Preclude Sandy Flood Coverage Claim
v. Harleysville Ins. Co., 2014 U.S.
Dist. LEXIS 86794 (D.N.J. June 26, 2014)
New Jersey District Court Senior Judge Joseph Irenas ruled that
the National Flood Insurance Act of 1968 preempts state law, allows
policyholders to directly sue Standard Flood Insurance Policy issuers, and
includes a strict one-year statute of limitations which, in this case,
required dismissal of the policyholder's flood insurance claim.
The insured's home was damaged by Hurricane Sandy. He
subsequently filed a claim under his Standard National Flood Insurance Policy
(SFIP), which provides subsidized flood coverage backstopped by the federal
Treasury. The insured disagreed with the adjustment of his claim by the
SFIP's issuer and therefore brought suit seeking what he viewed as the
appropriate payment for his covered property.
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