Long Island homeowners have yet to receive payouts from their flood insurance policies
Thousands of residents in Long Island, New York, are still waiting on their insurance payouts in the aftermath of Hurricane Sandy. The powerful storm struck the island more than three months ago, but many of its homeowners are still struggling to recover from the damage caused by the devastating storm. Most of these homeowners have been in contact with their insurance providers, but insurers have continued to delay claims payments or outright denying claims due to technicalities. For the vast majority of these people, problems with their homeowners insurance coverage is actually a problem with the federal government’s flood insurance program.
National Flood Insurance Program struggling to meet claims payments
Very few private insurance companies offer flood insurance in areas that are near the coast. Those that do typically only offer such coverage to businesses, leaving the majority of consumers to receive their flood insurance through the federal National Flood Insurance Program. The federal program is administered by the Federal Emergency Management Agency (FEMA), which claims that nearly half of all New York residents that have filed claims with the program have yet to receive payouts. The lack of funds has slowed the recovery effort considerably.
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Consumers growing weary of constant delays
Several neighborhoods in Long Island remain decimated by Hurricane Sandy while residents wait for their flood insurance problems to be solved. Many of these residents have been paying premiums on federal flood insurance coverage for decades and the delay in payouts is beginning to incite resentment against FEMA and the National Flood Insurance Program. Some of those that have been paying for flood insurance coverage for only a matter of months have, in rare cases, received payouts well before those that have been paying premiums for several years.
Federal program continues to be crippled by financial trouble
The National Flood Insurance program is riddled with serious financial problems that have consistently threatened its stability. Before Hurricane Sandy, the federal government had approved additional funds for the program that would ensure its continued operation for another five years. The powerful storm carved a sizable sum out of this financing, however, furthering the program’s financial woes. These problems continue to be felt by consumers that rely on the flood insurance program.