Flood insurance program needs to change, says Congress

A US Senator takes FEMA to task over its actions in the aftermath of Hurricane Sandy

Flood insurance program needs to change, says Congress

Insurance News

By Allie Sanchez

A US Senator has said that Congress will only renew the National Flood Insurance Program (NFIP), which is due to expire on September 30, if changes are made in the way it is administered.

Senator Robert Menendez told Federal Emergency Management Agency (FEMA) deputy associate administrator Roy Wright that the agency, which manages the NFIP, needs to be more accountable to the people it needs to protect.

A report by publication NJ.com said that Menendez expressed his dismay over the way the NFIP, which Wright also heads, handled the claims that came pouring in the aftermath of Hurricane Sandy.

“In the aftermath of Sandy, I saw firsthand all of the problems with the program and all of the work that needs to be done,” NJ.com reported Menendez’s arguments during a sub-committee hearing at the Senate Banking Committee.

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Menendez also noted that “the delays, the denials, the disputes they encountered throughout the flood insurance claims process” was a “manmade disaster.”

Reports have surfaced that insurers short-changed Sandy survivors by low balling damages.

The Senator was able to pressure FEMA into reopening claims and paying out an additional $350 million to homeowners.

NFIP, through Wright, has asked for a “timely, multi-year reauthorization” to “enable FEMA to continue supporting those who take steps to protect their homes and businesses.”


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April 1 to bring changes to the NFIP

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