Homeowners take issue with flood insurance and lack of paid claims

flood insurance program

Victims of Hurricane Sandy continue to fight for monetary compensation

Some 16 months after Hurricane Sandy slammed into the East Coast of the U.S., homeowners are still working to recover from the disaster. The powerful storm caused an estimated $68 billion in damage, most of which came from floods that were triggered by the storm. In New Jersey and New York, homeowners quickly learned that the damage caused to their properties was not covered by their insurance policies because private insurers in the U.S. do not offer flood protection. Instead, those affected by the storm had to rely on the National Flood Insurance Program, but few people actually had policies through this program.

NFIP has been unable to pay claims, even 16 months after disaster struck

flood insurance programWhile many homeowners did, in fact, have coverage through the federal program, many of these people are still waiting to receive claims payments. Delay in payments is due to the debt that has crippled the National Flood Insurance Program. Some homeowners insurance providers have managed to assist in claims payments, but only to a modest extent. As victims of Hurricane Sandy continue to struggle to overcome the damage caused by the storm, they are beginning to come together to launch lawsuits against FEMA and the federal government.

FEMA is slow to rectify issues concerning flood insurance

FEMA is responsible for overseeing the National Flood Insurance Program. The agency determines how much funds are available for claims payments. An estimated $3.5 billion in claims has been paid out by the National Flood Insurance Program. Over the past year, FEMA had come under heavy criticism for overpaying private insurance companies, allowing the federal insurance program to spiral further into debt.

Lawsuits may be able to provide homeowners with some degree of compensation

Several homeowners are now coming together to seek appropriate compensation from FEMA and the federal insurance program. This is meant to be accomplished through lawsuits targeting the two government entities. Whether these lawsuits will be successful is difficult to determine for certain, but lawmakers in both New Jersey and New York have expressed their support for homeowners receiving compensation for the damage caused by Hurricane Sandy, even if these homeowners do not have flood protection.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.