FEMA Fallout Continues

As FEMA Prepares To Reopen Claims, Agency Officials Scatter

By Mark C. Healey

With news that Sandy flood damage claims have been denied based on falsified reports, Assembly Phil Goldfeder says “FEMA has failed Rockaway.”In the two and a half years since Hurricane Sandy wreaked havoc in Rockaway, many residents believe their insurance claims were mishandled and wrongly denied.

In the wake of new allegations concerning that the National Flood Insurance Program (NFIP) may have denied or rejected Superstorm Sandy flood damage claims based on falsified reports, those same residents are now looking for justice, and payment.

The Federal Emergency Management Agency is now prepared to reopen “every flood insurance claim” filed by Sandy victims.

According to elected officials like Assemblyman Phil Goldfeder, this should have been done a long time ago. “FEMA has failed Rockaway,” said Goldfeder. “Our families for years have diligently paid their flood insurance premiums and done everything to be responsible homeowners expecting only to be treated fairly in return. But sadly, after Sandy hit, FEMA and the NFIP came back and dropped policyholders, blocked payouts, and engaged in alleged fraudulent activity.”

Goldfeder is pushing legislation that amends New York State insurance law to create the New York Flood Insurance Association as a choice for consumers when flood insurance is unaffordable or difficult to obtain. The Association includes provisions to help keep costs low for both policyholders and insurers, and would serve to combat many of the issues homeowners have faced after major flooding events. Following Sandy, families found their insurance claims contested by providers, with some even experiencing allegedly fraudulent practices on the part of insurance adjusters.

Amid the growing allegations, David Miller, the federal official who oversaw the National Flood Insurance

Program, has resigned. Earlier this month, Brad Kieserman, FEMA’s deputy associate administrator for insurance, admitted on CBS’ “60 Minutes” that homeowners may have been cheated out of millions in insurance money. Goldfeder, who was named to the New York State Assembly’s Insurance Committee in February, says enough is enough.

“This is a broken system that needs to be changed,” Goldfeder said. “As a lifelong resident of Rockawaywho had my own home devastated by Sandy and my family displaced, I understand the frustration in dealing with insurance companies and the fear of rising flood insurance premium.”

FEMA Administrator Craig Fugate said the federal agency is prepared to reopen and review every flood insurance claim — approximately 144,000 — filed by Sandy victims, and not limit corrective action to just the 2,200 currently in litigation.

FEMA said it will develop a process for all Sandy victims who are non-litigants, but believe their claims were unjustly denied or underpaid, so that their claims can be reopened and reviewed.

In a press release, Fugate said among other changes in policy, including those in personnel, the agency will commence a “Sandy Task Force” during the week of April 13 to begin evaluation of the program and focus on reforms.

“FEMA (has) acknowledged its failure to oversee a flood insurance program that cheated Superstorm Sandy victims out of much-needed funding to rebuild their homes and get their lives back on track,” said U.S. Senator Chuck Schumer. “FEMA has also made clear that it plans to hold accountable “all those who were involved in the program that may have facilitated or fostered this fraudulent behavior.
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