Attorney General launches criminal probe into potential wrongdoings by flood insurance providers
The New York Attorney General’s Office has launched an official criminal probe into accusations coming from victims of Hurricane Sandy concerning how their insurance claims were handles. Many homeowners in New York that were affected by Hurricane Sandy have had their insurance claims regarding flood damage denied by their insurance providers and have suggested that these claims were denied due to falsified engineering reports. As a result of rejected homeowners insurance claims, many consumers have suffered significant financial losses in the wake of Hurricane Sandy.
National Flood Insurance Program comes under fire
There have been at least lawsuits filed in federal court concerning the National Flood Insurance Program and its work with engineering firms. These firms were tasked with assessing damage caused to properties in the wake of Hurricane Sandy. These investigations were meant to determine whether damages to properties had actually be caused by floods or if they had been caused by other incidents. Those affected by the issue suggest that some engineering firms falsified their reports, claiming that damage caused to properties had nothing to do with flooding.
_________________________Random Quotes to Remember ~ “The best investment is in the tools of one’s own trade.” – Benjamin Franklin
Insurers offering coverage through federal program are being accused of manipulating the claims process
The National Flood Insurance Program is typically the only place for homeowners to find flood protection for their properties. The federal program offers policies from several insurance companies, but is financially responsible for these policies should claims be approved. The companies that are associated with the national program are being accused of participating in a scheme that involves rejecting claims unjustly and inflating the expenses affiliated with handling these claims for financial gain.
Attorney General to investigate potential criminal activity in the insurance sector
The New York Attorney General’s office is currently investigating the matter to determine whether or not any crimes were committed. Currently, the accusations made against flood insurance providers and their associated engineering firms have not yet been confirmed as true. Instances of potential fraud have been investigated in the past, however, and continue to receive legal attention.