The Federal Emergency Management Agency (FEMA) is beginning its probe into the allegedly lowballed Superstorm Sandy claims by asking flood insurance companies to turn over thousands of records by the end of the week. The data request includes the name of the engineering company and the amount of the damage that was not included in the final payout.
Doug Quinn's ranch house in Toms River, N.J., was heavily damaged by flooding during Hurricane Sandy. His insurance company gave him half the value of his home and when he appealed, FEMA sided with the insurance company.
The Federal Emergency Management Agency has taken the unprecedented step of reopening all Superstorm Sandy flood claims because thousands of homeowners said insurance companies intentionally lowballed damage estimates.
Similar allegations surfaced in 2004 after Hurricane Isabel struck the mid-Atlantic. To answer critics then, FEMA formalized an appeals process.
Lawyers for Superstorm Sandy victims filed another class-action lawsuit Friday against an insurance company, alleging adjusters miscalculated sales tax and then tried to hide their mistake.
Dozens of insurance companies are already accused of shortchanging Sandy Victims out of billions of dollars through the National Flood Insurance Program.
The Federal Emergency Management Agency (FEMA) runs the program, which allows people to buy flood insurance from the federal government. FEMA contracts private insurance companies to process claims and payouts.