As the Federal Emergency Management Agency seeks to settle lawsuits with plaintiffs who allege fraud in flood insurance policies following Hurricane Sandy, Sens. Charles Schumer and Kirsten Gillibrand are asking FEMA to include all who were victims of fraud, even those who didn't file suit.
About 1,200 civil suits have been filed in the U.S. District Court for the Eastern District of New York alleging that after Sandy, engineers' reports were falsified to show less damage than actually occurred to homes. This allowed flood insurance companies to deny insurance claims or pay less than was due to the homeowner.
FEMA overseas the National Flood Insurance Program under which these policies are issued and is expected to settle the cases.
October 29, 2020