Insurers Ordered To Pay Policy Limits Of $400M For Superstorm Sandy Flood Claim

The New Jersey Supreme Court has ordered several insurance companies to pay the amount owed to a public transportation agency related to trains damaged during Hurricane Sandy in 2012.

The insurers are on the hook for about $300 million in payments, to cover for the remaining amount owed to the train operator.

NJ Transit, the operator of the trains, had parked 343 locomotives and rail cars from its Meadowlands Maintenance Complex in Kearny prior to Sandy hitting the region. During a previous court proceeding, the agency had argued that the facility had not flooded in the past, hence it left the trains there.