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FEMA launches Hurricane Sandy flood insurance claims review process


June 1, 2015   by Canadian Underwriter


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The United States’ Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) announced the start of Hurricane Sandy flood insurance claims review, part of a “broad process to reform NFIP claims and appeals procedures.”

FEMA has begun mailing letters to about 142,000 policyholders

FEMA opened the Hurricane Sandy claims review process and began mailing letters to approximately 142,000 NFIP policyholders, offering them an opportunity to have their claims from Hurricane Sandy reviewed, FEMA announced on Friday. As part of the review, policyholders who have not pursued litigation or already received the maximum amount under their policy will have an opportunity to have their files reviewed; FEMA will contact policyholders and explain how to request this review.

“Flood insurance issues arising from Hurricane Sandy are of great concern to FEMA,” said Brad Kieserman, deputy associate administrator for federal insurance, in a press release. “We are committed to administering a program that is survivor-centric and helps policyholders recover from flooding in a fair, transparent, and expeditious way.” Kieserman added that “anyone who suspects they may have been treated unfairly” can call 1-866-337-4262.

Related: U.S. politicians vow to block FEMA from taking mistaken Superstorm Sandy aid

The storm made landfall on Oct. 29, 2012, and New Jersey was particularly hard hit by harsh rain and wind, Canadian Underwriter reported at the time. Two years after the hurricane hit, US$6.67 billion in federal assistance had been provided to New Jersey alone. Preliminary U.S. damage estimates were US$50 billion, with at least 147 direct deaths.

Policyholders who incurred losses from Hurricane Sandy from Oct. 27, 2012, through Nov. 6, 2012, and want their claim reviewed may contact FEMA. “As FEMA reviews Hurricane Sandy claim files, the agency will also begin overhauling the claims and appeal process and improving the customer experience,” the release said. “FEMA’s goals are excellent customer experience, responsiveness, transparency, low risk of waste, fraud and abuse and continuous improvement.”

Related: Quarterly loss & adjustment expenses for U.S. P&C carriers up ‘for the first time’ since Superstorm Sandy

FEMA will continue to work closely with Congress and federal, state, local, tribal and community officials to “ensure policyholders are paid every dollar to which they are entitled and to improve the flood insurance program going forward,” the release said.

Flooding is the most common natural disaster in the United States, FEMA concluded, noting that between 1980 and 2013, the U.S. suffered more than US$260 billion in flood-related damages.


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