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A class action was filed this week against nine local and national insurance companies, including Fidelity, Travelers and State Farm. These insurers are accused of wrongfully denying claims related to Irene and Sandy by misinterpreting the term “basement” in flood insurance policies. These Standard Flood Insurance Policies (SFIP), written in conjunction with FEMA’s National Flood Insurance Program, cover entire buildings, including any sunken room or sunken portion of a room, having its floor below ground level (subgrade) on all sides. The suit alleges that these rooms have been misclassified as “basements” and improperly excluded from coverage.