WASHINGTON, D.C.—Congressman Frank Pallone, Jr. (NJ-06) met with Union Beach Sandy victims to hear their stories of delays and complications faced when filing insurance claims with the National Flood Insurance Program (NFIP).
Pallone, who represents Union Beach, one of the hardest hit areas on the Jersey Shore during Superstorm Sandy, listened to residents who have experienced bureaucratic holdups with NFIP and the claims process. He has been outspoken about the importance of rebuilding the Shore and has called on FEMA to step in and remedy the obstruction and delays faced by Sandy victims when filing flood insurance claims.
“I was moved and disturbed to hear the stories relayed today and the frustration people have experienced when they attempted to file flood insurance claims,” said Pallone. “Union Beach residents have suffered enough from Sandy. They certainly don’t deserve to have to contend with miles of red tape just to file claims for insurance they already paid for.”
Pallone issued a letter to Federal Emergency Management Agency (FEMA) Administrator Craig Fugate on February 6, 2013 drawing his attention to the difficulties and challenges faced by residents filing claims with NFIP.
“We need to get New Jersey up and running again and we cannot suffer needless delays when people are trying to rebuild their homes and put their lives back together,” said Pallone. “These delays and complications are unacceptable and the process must be fixed. I will continue to call on FEMA for an explanation and to resolve the problems that too many New Jerseyans are facing when they file claims with NFIP.”
The following is the body of the letter sent by Pallone to Administrator Fugate:
February 5, 2013
W. Craig Fugate
Administrator
Federal Emergency Management Agency
U.S. Department of Homeland Security
500 C Street SW
Washington, DC 20472
Dear Administrator Fugate,
I write today regarding the National Flood Insurance Program (NFIP) and to bring attention to issues residents of New Jersey are having with the prolonged timeframe by which these claims are being processed. As you know, Superstorm Sandy devastated my district and a large portion of New Jersey. Many homeowners and businesses in the damaged areas have flood insurance policies through NFIP and are relying on these claim payments as they prepare to rebuild and repair their homes and businesses.
That is why I am troubled to learn that residents of New Jersey are facing myriad problems that are delaying processing of their NFIP claims. Since NFIP has no time frame by which claims adjusters must complete the proof of loss required to process payments and these adjusters are facing a workload of up to 150 cases each, New Jersey homeowners and businesses have been left waiting for a resolution for an unacceptable period of time.
I have also been told that homeowners are being required to fill out lengthy forms to provide receipts, serial numbers and photographic evidence of losses, which is difficult for many homeowners who lost everything they own. NFIP-required audits are also slowing down this process and making it difficult for adjusters to process claims quickly. While I certainly support ensuring that overpayment and fraud is avoided, we must make certain the residents of New Jersey receive the payments they deserve without unnecessary bureaucratic delay.
According to Governor Chris Christie, the New Jersey Department of Banking and Insurance is receiving more than 3 NFIP complaints for every homeowner insurance complaint. They have also notified me that over 85 percent of homeowner insurance claims have been processed compared to only 30 percent of flood claims.
It is simply unacceptable for residents of New Jersey, who have faithfully paid flood insurance premiums for years, to be left in the lurch when they need this assistance the most. It has now been 101 days since the storm and recent reports in the press state that thousands of people in the area are still in hotels. It must be assumed that many of them are there because they are unable to repair their homes to date without this critical assistance. I respectfully request that you take necessary steps within your power to cut the red tape and expedite the NFIP claims process so that New Jersey homeowners and businesses can begin the path to recovery.
Sincerely,
FRANK PALLONE, JR.
Member of Congress
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