At a Capitol Hill meeting hosted today by U.S. Rep. Chris Smith (NJ-04), Dean of the New Jersey Congressional Delegation, with Roy Wright, Deputy Associate Administrator for Insurance and Mitigation at the Federal Emergency Management Agency (FEMA), a bipartisan group of NJ Members of Congress continued to press for equitable relief for victims of Superstorm Sandy and permanent reforms to the National Flood Insurance Program (NFIP).

                “With over 16,000 Sandy victims in the reopened claims review process, FEMA must deliver on its promises and pay out what is owed to these policyholders. Between litigation and reopened claims, our constituents are receiving tens of millions of dollars that should have been in their hands years ago,” said Smith. “FEMA’s 30-day extension of the review deadline is helpful but not enough, and today we reiterated that an arbitrary deadline must not prevent the equitable relief that Sandy victims are entitled to.”

                Smith was joined at the meeting by Reps. Tom MacArthur (NJ-03), Scott Garrett (NJ-05), Leonard Lance (NJ-07), and Bonnie Watson Coleman (NJ-12), along with staff representing other Members of the delegation.

                According to Wright, the average payout on reopened claims has been roughly $15,000. Last month, following a bipartisan letter spearheaded by Smith, the U.S. Department of Housing and Urban Development announced that any additional payouts from the NFIP—up to $20,000—will not be treated as duplicative with HUD-funded awards such as grants made through the State of New Jersey’s Reconstruction, Rehabilitation, Elevation, and Mitigation (RREM) Program. 

                “I encourage any New Jersey resident who has not yet reopened their claim to do so before the October 15^th deadline—all it takes is a phone call, email, or fax,” said Smith. “I am hopeful that everyone who suspects they were under-compensated will take advantage of this opportunity.”

                Wright told the delegation that his agency is cooperating with investigations launched against possible fraudulent vendors. He also indicated that data from the current Sandy Claims Review Process is shedding light on some other causes of the significant underpayments, including excluded sales tax and debris removal costs and failures with adjustment software programs. Moving forward, Wright pledged to implement new training mechanisms and quality control measures and—for the first time—survey customers on their insurance provider.

                “While investigations into specific instances of fraud are ongoing, FEMA assured us that it will utilize the forensic evidence uncovered to expel bad actors and more closely monitor performance of specific inspectors and adjustors that may not be illegal, but simply shoddy and incompetent. That too must be addressed,” continued Smith. “I look forward to continuing my work with the delegation and FEMA to tackle these issues head-on and ensure lasting reform.”

                   More information on reopening a claim can be found here. NFIP Policyholders can go online to www.fema.gov/hurricane-sandy-nfip-claims to download a form requesting a review, which can be filled out and emailed to FEMA-sandyclaimsreview@fema.dhs.gov or faxed to 202-646-7970. Policyholders who have already requested a review of their claim do not have to call again—an adjuster will continue to work with them after the new October 15^th deadline.