Asbury Park Press - FEMA Makes Major Announcement on Handling Sandy Claims

News Article

By Russ Zimmer

Letters explaining the claims review process will start going out May 18 to policyholders who believe they were stiffed by their flood insurance companies after superstorm Sandy.a

According to a news release from Congressman Chris Smith's office, the Federal Emergency Management Agency (FEMA), which underwrites nearly all flood insurance coverage in the U.S., will begin sending these letters in batches by ZIP code within two weeks, . The recipients will have 90 days from the date of the notice to contact FEMA by phone or email to begin the review process.

This is the first tangible step in a an unprecedented reexamination of as many as 142,000 flood claims filed by homeowners after Sandy.

The review was ordered by FEMA after evidence emerged of a potentially widespread scheme to fundamentally change the engineering reports that insurance companies rely on to determine if a structural damage claim is paid out. Reports that blamed the post-Sandy damage on earth movement or house settling were often used to deny coverage.

Possible fraud aside, homeowners on the Shore and elsewhere have complained that they were lowballed by their insurers.

Sandy claims review could begin next month, FEMA says

How this process will actually unfold began filtering out Wednesday evening after a meeting between FEMA leadership and members of New Jersey's U.S. House contingent. FEMA updated nonprofits and policyholder advocates during a conference call Thursday morning.

FEMA's Monty LeMaire, speaking to the nonprofit community, explained the steps:

Letters will be sent out in phases, beginning with claims where an engineering inspection was performed. This is similar to what NFIP head Brad Kieserman sketched it out to New York and New Jersey's U.S. Senators during the first meeting of the Sandy Task Force last week.

The letters will contain a toll-free number for people to call to add their names to the list. There will also be an online option. FEMA told the Asbury Park Press Thursday that the letter was still being written.

The phone call will consist of a series of questions that verify basic facts about the claim in question and should take 15 to 20 minutes. The letter will instruct the policyholders on what information to have available for the conversation.

An outside firm -- which FEMA said has not yet been hired -- will take that information and begin working with a policyholder to maximize their claim. LeMaire was very clear when he said that although FEMA would be paying for their services, these claims adjusters would be working for the benefit of the homeowner.
A neutral third-party will make determinations on fair payment.

The entire process -- from the opt-in letter to resolution of the claim -- should take about 90 days, LaMaire said.

"That's worst-case scenario," he said. "I actually anticipate us handling these much quicker."

Source