Close to 1000 homeowners file lawsuits against insurance providers
Nearly 1,000 New Jersey residents that fell victim to 2012’s Hurricane Sandy have filed lawsuits against their flood insurance providers. In the U.S., flood protection is handled through the National Flood Insurance Program. The federal program exists as the only place for homeowners to find flood protection in the country, but the program itself is not responsible for the creation of the policies that it offers. Private insurers may not be offering flood protection outside of the federal program, but they may still be liable for the serious problems that emerged in the wake of Hurricane Sandy.
Judge aims to resolve cases in six months or less
The U.S. District Court Clerk’s Office expects that as many as 2,000 lawsuits will be filed by New Jersey residents by the end of the year. The issue is so severe, that the official overseeing these lawsuits, Chief Judge Jerome B. Simandle has developed a plan to resolve each case within a six month period. The number of lawsuits has gone unnoticed for nearly a whole year, which has added a greater sense of tension and urgency to the issue.
_________________________Random Success Quotes to Remember ~ "Take up one idea. Make that one idea your life -- think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body be full of that idea, and just leave every other idea alone. This is the way to success." -- Swami Vivekananda
Homeowners take issue with insurance compensation
The lawsuits are the result of homeowners unhappy with the compensation they received from their insurance providers in the wake of Hurricane Sandy. The disaster caused a great deal of damage to properties throughout the state, and many coastal communities are still struggling to recover from the catastrophe. Those affected by the disaster argue that they have not received the compensation they are owed. This has made it nearly impossible for their homes to be repaired in any significant way.
Insurers may face financial backlash over the issue
One of the reasons for the disparity in compensation for homeowners has to do with the fact that many people lacked the appropriate coverage needed to protect them from flooding damage. Conventional homeowners insurance policies do not typically offer flood protection. Those receiving protection from the National Flood Insurance Program, however, may have had the proper protection at the time of the disaster. If this is the case, insurers may be in for yet more financial fallout relating to Hurricane Sandy.