The head of the Federal Emergency Management Agency has asked an independent watchdog to examine whether the flood insurance program is shortchanging Superstorm Sandy victims. Administrator Craig Fugate testified before a subcommittee chaired by Sen. Robert Menendez (D-N.J.) on July 30.
The Record newspaper reports the New Jersey Democrat and other lawmakers told Fugate they’ve received hundreds of complaints about Sandy-related claims.
Fugate says he’s asked FEMA’s inspector general to ensure the agency provides rapid payments without making fraud protection its only goal. FEMA says a third of the 236,000 flood insurance policies in effect in New Jersey had a claim after Sandy.
Fugate also asked the watchdog to examine claims by Sen. Chuck Schumer (D-N.Y.) that lawyers representing insurers were making appeals last longer to increase their fees.
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