New York officials seek reforms to flood insurance

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Officials want to see reforms made to the National Flood Insurance Program

New York officials want to see more reform come to the U.S. National Flood Insurance Program, as well as how flood coverage is handled overall. Assemblyman Phil Goldefer and Senator Chuck Schumer are calling for significant reforms, hoping to address the crippling financial issues that have plagued those that were affected by 2012’s Hurricane Sandy. The hurricane caused significant damage to property in New York and other states. The storm left many homeowners in financial stress, as their claims were rejected because they did not have appropriate flood protection.

New review process could be a boon for homeowners

According to an announcement from Assemblyman Goldfeder, the Federal Emergency Management Agency, which operates the National Flood Insurance Program, is set to open a review process for all those that have been affected by Hurricane Sandy. This process will provide a way for homeowners have their claims re-examined and, in some cases, could unveil instances of fraudulent activity that took advantage of consumers.

Many people are still struggling to recover from Hurricane Sandy

storm flood insurance rainMore than two years after the impact of Hurricane Sandy, many homeowners that were affected by the disaster are still struggling to rebuild their properties. This is because their claims were rejected by their insurance provider. In many cases, homeowners did not have flood insurance protection, as this is a form of supplemental coverage that is not part of conventional homeowners insurance policies. Even those that did have flood protection found their claims rejected due to technicalities, which has placed homeowners under a great deal of financial stress.

Some insurers may have employed poor business practices to avoid claims

The review process may be a step forward in holding insurance companies accountable for their actions in the wake of Hurricane Sandy. While the National Flood Insurance Program is operated by the federal government, it is comprised of policies provided by private companies. Some of these companies are being accused of poor business practices that have had a negative impact on consumers in New York and other states.

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