Schumer & Gillibrand Call for Immediate FEMA Investigation Into Whether Long Island Homeowners Are Being Treated Fairly & Without Bias By Write-Your-Own Insurance Companies That Have Denied Their Claims

Press Release

U.S. Senators Charles E. Schumer and Kirsten Gillibrand today called on the Federal Emergency Management Administration (FEMA) to immediately investigate repeated red flags involving Superstorm Sandy insurance claims for homeowners on Long Island. The Senators said that FEMA must conduct a top-to-bottom investigation to ensure that insurance companies have evaluated Long Island homeowners' insurance claims fairly and without bias, in light of many serious signs that this is not the case, including a federal Magistrate Judge's recent order that revealed that flood insurance providers have engaged in potentially fraudulent activities to reduce the amount of money paid out to Long Island policyholders.

"I smell a rat in the way Sandy insurance claims are being handled, and we want FEMA to get to the bottom of this sewer," said Senator Schumer. "There have been repeated signs of underhanded practices taken by insurance companies to avoid paying flood insurance policy holders the funds that they so desperately need, and are owed, to rebuild after Superstorm Sandy. It appears to me that these policyholder claims are being mishandled and delayed at best, and doctored and manipulated at worst. Sandy victims deserve better and we are urging the federal government do more to ensure that homeowners receive compensation for their losses."

"I have seen these documents myself and this is outrageous," said Senator Gillibrand. "We need to get to the bottom of this with an independent investigation and hold people accountable. If the claims that the insurance companies are falsifying documents to deny claims are true, then people need to be investigated criminally for this unconscionable and inhumane behavior. I also have serious concerns about how FEMA is handling these claims and the waste of taxpayer dollars by lawyers slow walking getting homeowners the money they deserve."

Senators Schumer and Gillibrand highlighted their deep concerns by the revelations disclosed in Judge Brown's decision last week, and demanded that FEMA conduct a top-to-bottom investigation of the denial of homeowner's flood insurance claims based on documents that were amended in the "peer review" process and utilized by engineering firms hired by the flood insurance companies. The Senators said that FEMA must provide answers immediately to determine how often this practice was utilized and for how long. The Senators said homeowners deserve the opportunity to see all of the reports and drafts prepared in evaluating their claims, and that FEMA has a responsibility to insure that the Write Your Own insurance companies defense of these claims is done fairly and without bias. The Senators said that, based on Judge Brown's ruling this pastFriday, they are doubtful that this was done.

The Senators said FEMA must immediately conduct a top to bottom review of the NFIP claims process, in light of obvious flaws brought to light by Mr. Raisfeld & Ms. Ramey's case in Long Beach.

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