Nelson cites report in Post, questions FEMA about denied claims

U.S. Sen. Bill Nelson of Florida cited reporting by The Palm Beach Post Tuesday in announcing he has asked Federal Emergency Management Agency administrator William B. Long to take steps to ensure consumers have confidence their National Flood Insurance Program claims from Hurricane Irma are being treated fairly.

“In reviewing the very high level of claims denied to date, I am reminded of serious charges brought against the NFIP by whistleblowers and Superstorm Sandy victims that accused the program of fraudulently reducing and denying claims,” Democrat Nelson wrote to Long.

The Post reported this week that nine out of 10 NFIP claims closed in the early going after Hurricane Irma have resulted in denied payment, according to records sent to Florida’s insurance commissioner. FEMA officials noted that the process was ongoing, nearly $100 million in payments had been approved and paid claims were expected to rise.

A 2015 investigation by CBS’s “60 Minutes” detailed allegations consumers were fraudulently denied or given reduced payments for Sandy claims, Nelson noted.

“These concerns are reinforced by the fact that a top NFIP administrator was once an executive for a FEMA subcontractor accused of lowballing Sandy claims,” Nelson said. “Unfortunately, this could be seen by some as a case of the fox guarding the hen house. NFIP policyholders must have confidence in the claims process.”