Superstorm Sandy

AP Photo/Jessica Hill

The Federal Emergency Management Agency (FEMA) has begun revealing details on how it will reform the National Flood Insurance Program.

FEMA oversees the program, which allows people to buy flood insurance from the federal government.  The agency contracts private insurance companies to process claims and payouts through the program.

FEMA's talk of reform follows weeks of criticism that the private insurance companies who administer the program underpaid homeowners following Superstorm Sandy.

AP Photo/Jason DeCrow

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.

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.

AP Photo/Jason DeCrow

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.

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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