Letter to Craig Fugate, Administrator of FEMA - National Flood Insurance Program

Letter

U.S. Senator Charles E. Schumer today urged the Federal Emergency Management Administration (FEMA) and property casualty insurers who administer FEMA's National Flood Insurance Program (NFIP) to ramp up the resources at their disposal to handle the surge of incoming flood and other insurance claims for Capital Region homeowners impacted by the recent torrential rains and flash floods that caused excessive damage to homes and small businesses.

Schumer said that a quick and fair review of insurance claims will allow the rebuilding process to move forward quickly and will ensure that those in Montgomery and Warren Counties gets back on their feet sooner, but warned that past experience -- including in the aftermath of Superstorm Sandy -- shows that insurers are often not prepared to handle surges in claims. In his letter Schumer urged FEMA and the insurers to work together to ensure that there will be enough claims adjusters on the ground to handle the surge in claims.

"The Capital Region experienced severe flooding at the end of June, which caused severe damage to homes, businesses and public infrastructure. As the region begins the recovery process, it is critical that flood and other insurance claims are processed quickly and fairly, so that residents and business owners can rebuild as quickly as possible. In anticipation of a significant number of incoming claims from Montgomery and Warren counties, I am also specifically urging that FEMA and the insurers who administer the federal flood insurance program work together to boost the hiring of adjusters to ensure a quick turnaround and to demonstrate that residents are not on their own."

In his letter, addressed to FEMA and the Property Casualty Insurers Association of America (PCIAA) Schumer urged PCIAA to ensure that its members work expeditiously and fairly their efforts to review flood insurance claims for residents of Montgomery and Warren Counties in the aftermath of significant flooding at the end of June. Specifically, the Senator is asking that insurance companies hire more adjusters or recruit them from other areas, if needed, to deal with the increased volume and prevent significant delays for homeowners. Furthermore, he is asking that insurance companies offer residents the benefit of the doubt when evaluating their claims, and not nickel and dime homeowners who have already been denied Individual Assistance by FEMA. The Senators highlighted that a disaster of this nature can have a devastating impact on one's home or business and so by working fairly and closely with residents insurance companies can help ensure that local residents are provided with the support they need at this difficult time.

In parts of the Capital Region, a significant number of homeowners and businesses sustained a substantial amount of damage due to heavy rains and flooding on June 28th and 29th. Now, as residents and business owners begin to file claims Schumer asked that insurance companies work quickly and fairly in an effort to ensure that those impacted by this disaster get the support they need and deserve. Schumer urged FEMA and the insurers to learn from the experience of Superstorm Sandy, when insurers were not equipped to respond to a sudden surge in claims and the processing of flood claims significantly lagged the processing of other claims and often took several months. While not on the scale of Superstorm Sandy, recent flooding will certainly lead to a major increase in claims, and Schumer put FEMA and the insurers on notice that they should be prepared to handle the surge in a timely manner.

A copy of Schumer's letter appears below:

Dear Administrator Fugate and Mr. Sampson,

I write today to respectfully request that your respective organizations work together and, in the case of the Property Casualty Insurers Association of America, work with your members to expeditiously and fairly review insurance claims for residents of the Capital Region, in the aftermath of significant flooding at the end of June. As I saw firsthand when touring flooded areas, there are a significant number of homeowners and businesses that sustained a substantial amount of damage due to heavy rains and flooding on June 28th and 29th. Now, as residents and business owners begin to file claims I ask that your members work quickly and fairly in an effort to ensure that those impacted by this disaster get the support they need and deserve.

Specifically I would ask that you work together to ensure that insurers administering National Flood Insurance Program (NFIP) policies in the area are appropriately staffed up, and hire more adjusters or recruit them from outside the area if needed, to handle the increased volume and prevent significant delays for homeowners. Furthermore, I would ask that insurers offer residents the benefit of the doubt when evaluating their claims, rather than nickel-and-diming them, especially in light of the decision by FEMA to deny Individual Assistance to the homeowners affected by these recent storms. As you know, a disaster of this nature can have a devastating impact on one's home or business and so by working fairly and closely with residents your members can help ensure that they are provided with the support they need at this difficult time.

Both the Federal Government and State Government have committed significant resources to help impacted communities like recover from this storm, but often times insurance policies are the first and most important source of help for those who were impacted, and so it is of critical importance that FEMA and the insurers administering the NFIP in the Capital Region work quickly and fairly. I ask that your members do everything in their power to avoid delays, backlogs, and disputes as our community works together to recover from this storm.

Thank you for your consideration of this request and in advance for your efforts on behalf of those who were impacted. Should you have any addition questions please do not hesitate to contact my office.

Sincerely,

U.S. Senator Charles E. Schumer

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