FEMA fails to meet 90-day deadline

Review of claims drags on interminably, drawing the ire of New York’s two US senators

Insurance News

By Lyle Adriano

The Federal Emergency Management Agency (FEMA), which finances almost all residential flood insurance in America, announced last March that it still had to review a record 142,000 claims filed after Sandy. Despite FEMA’s best efforts over the 160 days it gave itself, the agency recently revealed that less than 200 people have been paid.

The Sandy Claims Review program, extended for 30 more days, was closed October 15.

As of October 26, FEMA confirmed the following figures:
  • Over 29,000 called the agency’s call center or downloaded an application
  • 17,078 were deemed eligible for recompense
  • 786 cases have been closed out
  • 190 checks have been cut
  • Three out of five reviews detailed that the homeowner had been underpaid
  • The average payment was around $15,000
The two US Senators from New York, Charles Schumer and Kirsten Gillibrand, sent FEMA a letter, stating that more than half of the eligible cases handled had been in queue for more than 90 days, and more than one-third had been waiting for even longer—at least 120 days.

"Based on these numbers and trends it is undeniable that several elements of the Claims Review Process are not working effectively and these issues must be addressed immediately," the letter by the senators read.

Brad Kieserman, developer of the review process for FEMA, said in June that the agency could finish most reviews within 90 days of requests. Kieserman, however, resigned days after making the announcement to take a position in the American Red Cross.

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