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All posts in 2015

11 May 2015

FEDS PROBE WHY SANDY VICTIMS WERE SHORTCHANGED ON FLOOD-INSURANCE CLAIMS

Critics call for wide-ranging, structural reforms to ensure problems encountered after Sandy don’t happen again

sandy

Amid the stress and confusion in the immediate aftermath of Superstorm Sandy, residents of coastal communities found themselves struggling to comprehend their losses and how to begin to put things back together.

They contacted their insurance companies to file flood claims — but many of them didn’t fully understand the process or their rights.

“What happened to a lot of people was the adjuster that came out would fill out a proof-of-loss form for the homeowner and then say, ‘Here. This is how much you’re getting.’ And a lot of people didn’t even get a copy,” said Amy Bach, who runs United Policyholders, a national insurance consumer advocacy group.

“They said they didn’t know what the basis was for the settlement offer they got. And a lot of people just overwhelmed by life and overwhelmed by the disaster would sort of sit on it and say, ‘OK. Jeez… I don’t know what I’m going to do with $13,000 when my damage is $80,000, but I don’t really know where to go.’”

Two -and-a-half years later, those problems — a mix of errors, shortcuts, and alleged fraud that appear to have been commonplace in both those initial inspections and the claims- handling process that followed – are still causing difficulties for storm victims and bogging down d down the state’s long-term recovery.

11 May 2015

Slowly rebuilding after Sandy, but thousands still displaced while working with N.J. program

More than 2½ years after Superstorm Sandy caused a multibillion-dollar path of destruction, just one-eighth of homeowners — or about 1,000 — in the state’s primary rebuilding program have completed construction and returned home.

While that figure represents a marked uptick in progress since the end of last year, when just 330 had completed reconstruction, it amounts to just a fraction of the approximately 8,300 homeowners enrolled in the state’s Rehabilitation, Reconstruction, Elevation and Mitigation Program, or RREM.

“It is welcomed that the number has gone up so much in the first quarter of the year,” said Susan Marticek, executive director of the Ocean County Long-Term Recovery Group, one of several such groups formed after Sandy to help storm victims. “But the reality is, we’re coming up on two years of the program and we still have a long way to go.”

05 May 2015

FEMA Chief on Sandy Flood Insurance Claims: ‘We Want to Fix This’

The head of the Federal Emergency Management Agency says he wants to fix what went wrong with the process of paying flood insurance claims following Superstorm Sandy.

Craig Fugate told the first meeting of a congressional task force in Washington on April 28 that the flood program has to be revamped so equal importance is given to paying the full amount of legitimate claims.

“We want to fix this,” Fugate said. “If we owe money, we pay. Too often in government we are focused on not making an overpayment, putting more emphasis on not overpaying a claim. I gotta get it right. How do we get to something that’s more successful and works better the first time?”

New Jersey’s U.S. Sen. Bob Menendez, a Democrat, said the task force will focus on FEMA’s agreement to reopen all underpaid flood insurance claims for Superstorm Sandy victims. He said some of the underpayments were caused by “lowballing and manipulation of engineering and adjustment reports.”

“Getting it right means no overpayments, but it also means no underpayments,” Menendez said. “We have to get it right.”

The task force consists of the four senators from New Jersey and New York, Fugate, Sandy victims and their advocates in both states. It will recommend ways to improve the performance of the flood insurance program.

One of the members is George Kasimos, of Toms River, New Jersey, who formed the grass roots group Stop FEMA Now when FEMA announced that flood insurance rates would soar based on new flood maps it issued two months after the October 2012 storm.

29 Apr 2015

TWO-AND-A-HALF YEARS AFTER HURRICANE SANDY, STORM VICTIMS STILL STRUGGLE

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Andrea Kassimatis and her family of five are still living in a 37-foot trailer as they wait for contractors to finish building their new home.

Robin Buck remembers how excited he was when he was first approved for a state grant to fix his flooded Long Branch, NJ, home.

“It’s like hitting the lottery!” he said. “I was telling everybody. It was the best thing that ever happened to me, and that’s the truth. They were going to lift my home, and they’re paying me to do so? That is great!”

After spending $43,000 on repairs to make his house livable, he signed his grant paperwork last fall, then disconnected the utilities, handed over his keys, and moved out in early November so his state-appointed contractor could raise his home to protect it from future storms. The whole process, he was told, would take less than 90 days.

After Thanksgiving, as temperatures began to drop, Buck made several phone calls and sent emails to his caseworker to ask who would be responsible for winterizing his home.

“They were like, ‘Oh yeah. We’re going to come right out. I’ll have a guy out there Friday. Don’t worry about nothing,’” he recalled. “So I never paid no mind to it. I thought everything was taken care of.”

29 Apr 2015

Sandy claims review could begin next month, FEMA says

Thousands of homeowners who think they were lowballed by flood insurers after superstorm Sandy should keep an eye on their mailboxes next month, although for most it will likely be a longer wait for justice.

Executives at the Federal Emergency Management Agency, which underwrites nearly all flood insurance policies in the U.S., divulged details about the still-forming review process during the first meeting of the Sandy Task Force, a committee that includes U.S. senators from New Jersey and New York.

FEMA head Craig Fugate said the plan is to start first with the claims where an engineering review was performed by any firm that has been tied to some of the questionable actions that have come to light in recent months. After that, he continued, will be policyholders whose insurer had an structural inspection performed by any other firm. Then, finally, anybody else whose policy was paid out below policy limits.

“I want to be able by May to send out the first letters,” said Brad Kieserman, who is overseeing what FEMA is calling the Sandy claims review.

Kieserman declined to elaborate on any time line, acknowledging that number of people potentially involved — more than 140,000 claims could be in line for a another look — makes this “unprecedented.”

Last month, FEMA said it had identified 15,311 claims where an engineering report was prepared on behalf of the insurer and the payment was something less than the maximum the policy allows. Of those, 3,402 were in New Jersey.

28 Apr 2015

FEMA Chief on Sandy Aid: ‘We Want to Fix This’

The head of the Federal Emergency Management Agency says he wants to fix what went wrong with the process of paying flood insurance claims following Superstorm Sandy.

Craig Fugate told the first meeting of a congressional task force in Washington on Tuesday that the flood program has to be revamped so equal importance is given to paying the full amount of legitimate claims.

“We want to fix this,” Fugate said. “If we owe money, we pay. Too often in government we are focused on not making an overpayment, putting more emphasis on not overpaying a claim. I gotta get it right. How do we get to something that’s more successful and works better the first time?”

New Jersey’s U.S. Sen. Bob Menendez, a Democrat, said the task force will focus on FEMA’s agreement to reopen all underpaid flood insurance claims for Superstorm Sandy victims. He said some of the underpayments were caused by “lowballing and manipulation of engineering and adjustment reports.”

“Getting it right means no overpayments, but it also means no underpayments,” Menendez said. “We have to get it right.”

The task force consists of the four senators from New Jersey and New York, Fugate, Sandy victims and their advocates in both states. It will recommend ways to improve the performance of the flood insurance program

28 Apr 2015

NJ, NY Senators Convene Sandy Task Force


WASHINGTON, DC – U.S. Senators Bob Menendez and Cory Booker (both D-N.J.), and Charles Schumer and Kirsten Gillibrand (both D-N.Y.) today convened the first meeting of the Sandy Task Force to examine problems within the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) arising in the wake of Superstorm Sandy and develop recommendations for short- and long-term fixes.

The Sandy Task Force will focus on a range of relevant issues, including FEMA’s commitment to reopen all underpaid flood insurance claims from Superstorm Sandy victims caused by widespread lowballing and manipulation of engineering and adjustment reports. It will also explore the viability of a complete overhaul of the NFIP, including whether the current model of relying on third-party, private, Write-Your-Own (WYO) insurance companies to process claims, is the best way to serve policyholders.

“Your government failed you, plain and simple, and you deserve much, much better,” said Sen. Menendez. “The purpose of this Task Force is very simple: 1) to bring justice to the Sandy survivors who were lowballed; and 2) to fix the claims process so this injustice never happens again. The Task Force’s goal is to make the flood insurance program more efficient and more responsive for the next storm victims, while restoring fairness and ending the nightmare for current storm victims.”

10 Mar 2015

EXPLAINER: WHY SOME SANDY SURVIVORS HAVE BEEN ASKED TO PAY BACK AID THEY’VE RECEIVED

sandy recovery victims

Sandy victims at a recent meeting of the group Stop FEMA Now, expressing their concerns about the recovery.

In the aftermath of Sandy, two of the main places many storm victims turned for assistance were FEMA and the NJ Department of Community Affairs, which distributed housing and rental aid from the federal government. The money from both these sources has been instrumental in helping residents slowly repair their damages and rebuild their lives.

But just as they thought they were making progress, some Sandy survivors have been surprised to receive letters in the mail asking them to return some of that funding or notifying them of reductions in the amounts they had previously been promised. In some cases, these letters threaten legal action, negative reports to credit agencies, property liens, and impacts on residents’ future eligibility for federal disaster assistance if they fail to pay. The requests — which the government refers to as “recoupment,” but which homeowners call “claw backs” stem from government audits that found miscalculations in the original grant amounts or determined that recipients are not in fact eligible for as much as they had initially been told.

06 Mar 2015

Should homeless qualify for Sandy housing assistance?

When superstorm Sandy blew through Lakewood in 2012, a tree crushed Will Brown’s dwelling. Brown’s dwelling was made not of brick and mortar, but of nylon and twine.

That distinction doesn’t matter to homeless advocates, who are urging former residents of Tent City — a homeless camp in the woods of Lakewood that has since shuttered — to apply for two years of federal housing vouchers meant to help low-income Sandy victims.

“I lost everything that I owned to Sandy,” said Brown, 51, who could not rebuild the tent. “A generator, a TV set, a DVD player, clothing, canned foods – it was all destroyed.”

The thought of people who were homeless before Sandy taking advantage of the Sandy Tenant-Based Rental Assistance Program is “totally absurd,” said Diane Mazzacca, whose home in Beach Haven West was severely damaged by Sandy.

“I’m so livid, I could spit nails,” Mazzacca said. “New Jersey wants to pay for social services on the backs of Sandy victims.”

Housing advocates see nothing extraordinary about the homeless getting the Sandy help. The superstorm impacted not only property owners and long-term renters, but those in unstable housing situations, said Adam Gordon, an attorney with the non-profit Fair Share Housing Center, one of several organizations encouraging the homeless to apply for the 1,400 TBRA vouchers, which will total $32 million.

26 Feb 2015

New Sandy aid program to provide short-term rental help

A new aid program for superstorm Sandy victims will provide payment for temporary housing while their homes are undergoing repairs or being elevated.

The Rental Assistance Program, approved Thursday by the New Jersey Housing and Mortgage Finance Agency (HMFA) board, will provide up to $825 a month for up to three months for eligible homeowners who are participating in the state’s Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) or LMI Homeowners Rebuilding programs.

The program will begin accepting applications March 16. Details on how and where to apply for the aid will be released when the program launches that same day, according to a press release from the state Department of Community Affairs.

“Right now, rental assistance for temporary housing is a significant need for homeowners in our major housing recovery programs,” said Housing and Mortgage Finance Agency Executive Director Anthony L. Marchetta. “The administration recognizes that rebuilding, repairing or elevating a home puts a significant strain on families who are already shouldering a great financial burden. There is a need to help relieve some of that financial pressure and facilitate the recovery process to get families back home.”