Fisker sued by insurer after $33 million claim for destroyed Karmas denied

If you've ever felt tricked by the fine print in an insurance policy, you'll find a little sympathy for Fisker Automotive. After 338 Fisker Karma electric vehicles were flooded and destroyed by superstorm Sandy, with many burned after their battery packs caught fire from immersion in salt water, Fisker did as any business would and filed a claim with its insurance company for $32 million, the value of the lost vehicles.

But the insurer denied the claim. Why? Because it found that Fisker had been using the low-lying New Jersey shipping terminal as a storage lot to fix the Karmas' defects for more than three months — which it claimed wasn't covered by the policy.