FEMA to Allow Review of Disputed Sandy Flood Insurance Claims

Federal Emergency Management Agency officials have agreed to let Superstorm Sandy victims who think their insurance claims were not fairly paid out to undergo a review.

The review could include up to 144,000 claims and won’t limit corrective action to 2,200 that are currently in litigation.

A spokesman for FEMA says the agency is setting up a process for survivors to have claims reviewed. Every claim will not be automatically reviewed.

The announcement comes following allegations of fraud involving how some insurance companies assessed damage.

Sens. Robert Menendez and Cory Booker of New Jersey and Charles Schumer and Kirsten Gillibrand of New York met with FEMA administrator Craig Fugate on Wednesday.

FEMA also asked engineering and insurance firms to give survivors access to their engineering reports.

Insurers have denied any wrongdoing.