Settlements have been reached in 160 cases between federal disaster assistance officials and Hurricane Sandy victims who claim they were unfairly denied flood insurance claims or paid too little for property damages. Over 1,000 Hurricane Sandy victims have alleged that insurance companies rejected claims based on fraudulently manipulated engineering reports of storm damage. According to an official from the Federal Emergency Management Agency (FEMA), which ultimately pays flood claims, the agency will work with insurers to negotiate accords in all outstanding cases, as well as compensate those who fought insurance payments without suing.
These cases follow numerous allegations that private insurers working in partnership with FEMA’s National Flood Insurance Program denied or underpaid flood insurance claims based on falsified engineering reports. Approximately 1,500 cases over flood claims from Hurricane Sandy are currently pending in New York and New Jersey.