With an investigation into the cause of the fire complete, insurers can now move to begin assessing the devastation left behind on the Seaside boardwalk in New Jersey.

Fifty or so businesses sit charred and gutted on the legendary New Jersey shore boardwalk shared by the towns of Seaside Heights and Seaside Park after a fast-moving Sept. 12 fire—requiring the response of hundreds of firefighters—engulfed businesses freshly reopened after Superstorm Sandy struck the Jersey coastline about a year ago.

“Adjusters are now allowed on the scene now that the investigation is over and the fire has been ruled accidental,” says Steve Powell, president of the Surplus Lines Assoc. of New Jersey (NJSLA) and vice president of personal lines for wholesaler FTP Inc. in Old Bridge, N.J.

This section of the boardwalk became very well-known following Sandy since two symbols of the storm’s effect on the Jersey shore—the roller coaster in the ocean and the inexplicably upright Ferris wheel—were located on Funtime Pier near the location of the fire. Almost all of the children’s rides on the pier were lost to Sandy and the area remained closed this summer.

But the small business structures lining the boardwalk were largely unaffected by the Oct. 29, 2012 storm—or so it would seem. Turns out, investigators have concluded old electrical lines under the boardwalk, compromised by salt water and sand, was to blame for the fire.

Powell says the surplus lines market provides coverage to many of the businesses affected by this fire and by Sandy a year ago, due to the very close proximity to the ocean.

“We’ll be back at it again,” says Powell. “These people have certainly been through a lot and we have an opportunity once again to help our customers.”

He could not venture a guess of insured losses from the blaze.

“It’s just too early,” says Powell, adding that at the very least, there will be no worries over flood insurance. “Fire is covered.”

NJSLA was contacted by the state Department of Banking and Insurance to “keep the communication lines open.” The organization has been encouraged to accumulate and report what properties are insured in the surplus market, which company insures them, and the status of the claim.

“There was a tremendous amount of cooperation with DOBI after Sandy and there will continue to be now,” says Powell.

Adjusters need to move in quickly, according to an email to NJSLA members. The state is soon set to tear down structures and remove the debris.

About $5 million of the $15 million in federal aid earmarked for the area will go toward clean-up, according to reports.

DOBI says claims payments for demolition or debris removal “should be itemized so that the state may recoup those costs from insureds.”

Fire victims may be eligible for Sandy aid since the storm sent saltwater and sand under the boardwalk.

Special Reports /

N.J. Surplus Carriers Move In to Assess Seaside Boardwalk Fire Damage

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