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Feds Prepared To Reopen All Superstorm Sandy Insurance Claims

A worker shovels muck out of a home in Longport, N.J., after Superstorm Sandy in 2012. Federal regulators say homeowners will be able to challenge insurance payouts they believe shortchanged them.

The Federal Emergency Management Agency says it is prepared to reopen all 144-thousand insurance claims that resulted from Superstorm Sandy in 2012. The move comes after months of questions over whether insurance companies contracted by the National Flood Insurance Program fraudulently altered engineering reports.

After thousands of homeowners said their insurance claims were systematically lowballed, FEMA began negotiations in an attempt to regain the trust of policy holders. While no agreement has yet been signed. FEMA spokesman Rafael Lemaitre says, "There will be a process set up so that everyone who filed a claim will have an opportunity to go back and have their case reviewed if they feel they did not get every dollar they are legitimately owed."

FEMA also says the head of the flood program, David Miller, has resigned.

Copyright 2015 NPR. To see more, visit http://www.npr.org/.

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