FEMA Appeals Usually Land On The Side Of Insurance Companies

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FEMA Reopens All Hurricane Sandy Flood Claims

Insurance companies don’t like to pay claims. If they are forced to pay, they find ways to reduce what they owe. Just ask anyone that lost property during Hurricane Sandy. Insurance companies low-balled hurricane damage estimates and in some cases, if not all, fraud played a role in them. FEMA came up with an appeals process in 2004, but that process hasn’t helped hurricane victims. FEMA sided with the insurance companies.

Some homeowners fought the insurance companies and found proof of fraud, so they felt confident that FEMA would grant them what they deserved stated Marcio Alaor BMG. But when homeowners got the FEMA verdict they couldn’t believe it. The government sided with the insurance in almost every case.

Part of the problem is FEMA doesn’t review all of the appeals. Servicing companies hired by insurance companies do most of the work in the appeal process. The servicing companies then send the appeal to the adjustor that wrote the claim in the first place. The adjuster gives his input, which is usually what he said in the first place.

Obviously the FEMA appeals process is dysfunctional. Once again, the government displays its ineptness when it comes to any kind of problem-solving and practical resolutions.

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