flood insurance

The Federal Emergency Management Agency is allowing more than 140,000 victims to review claims if they feel insurance companies shortchanged them.

Transcript:

AUDIE CORNISH, HOST:

The Federal Emergency Management Agency is allowing more than 140,000 victims to review claims if they feel insurance companies shortchanged them.

Transcript:

AUDIE CORNISH, HOST:

Brad Horrigan/WNYC

Superstorm Sandy’s storm surge was so strong when it hit Long Island in October 2012 that it lifted up Dan Stapleton’s Long Beach home and then kicked in the corner of the foundation. It left a 30-foot hole around his house.

Hansi Lo Wang/NPR

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.

Patrick Semansky/AP

 

The Federal Emergency Management Agency says it is prepared to reopen all 144,000 insurance claims that resulted from Superstorm Sandy in 2012.

The move comes after months of questions over whether insurance companies contracted by the National Flood Insurance Program fraudulently altered engineering reports.

After thousands of homeowners said their insurance claims were systematically lowballed, FEMA began negotiations in an attempt to regain the trust of policy holders.

No agreement has yet been signed.

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