FEMA reports more flood insurance payout came to New Jersey over past week
The Federal Emergency Management Agency (FEMA) has announced that more than $200 million in flood insurance payments have been issued to New Jersey over the past week. The payments were disbursed through the National Flood Insurance Program, through which most U.S. homeowners receive their flood insurance coverage. The recent payments bring Hurricane Sandy’s insurance payout total to $2.7 billion. Federal officials note that more payments are on the way as claims continue to be processed through the federal flood insurance program.
Hurricane Sandy continue to cause financial strain for victims
Hurricane Sandy has been a very controversial issue in the eastern U.S. The storm, which struck the East Coast in late October of 2012, caused widespread flooding, which accounting for the majority of the damage associated with the storm. Because private insurance companies often do not provide coverage for flooding, especially in coastal regions, most homeowners receive coverage through the National Flood Insurance Program. The federal program has been plagued with financial woes since 2005’s Hurricane Katrina and has been struggling to overcome these problems for several years.
FEMA reports $555 million in payouts to New Jersey
Because of the problems facing the federal program, flood insurance claims payouts have been delayed several months, which has drawn the ire of politicians in New Jersey and New York, the two states hit hardest by Hurricane Sandy. To date, some $555 million has been issued to New Jersey in the wake of Hurricane Sandy. Much of this money has gone to homeowners and renters in order to cover the cost of repairs to property as well as cover the costs associated with transportation. Funds also went to several non-profit organizations and communities that have requested federal aid in order to expedite the recovery and clean-up process.
Looming deadline could cause stress for Hurricane Sandy victims
New Jersey Governor Chris Christie, whom has been very outspoken concerning the “failings” of the National Flood Insurance Program, claims that Hurricane Sandy caused more than $37 billion in damage throughout the state. Victims of the storm face a deadline if they want to receive financial aid from FEMA and have until April 1 to submit claims through the National Flood Insurance Program. After the deadline, claims will no longer be accepted.