NJ Lawmakers Say More Help Coming To Homeowners Struggling After Sandy

SECAUCUCS, N.J. (CBSNewYork/AP) -- More help is on the way for homeowners who were devastated by Superstorm Sandy.

U.S. Sen. Robert Menendez and other New Jersey lawmakers on Friday announced the Federal Emergency Management Agency will take new steps to help homeowners still struggling to rebuild.

Menendez and the others have demanded FEMA investigate allegations that insurance companies handling Sandy flood damage claims are manipulating them to shortchange homeowners.

"One of the biggest issues that we've had in our region is what we believe is an unfair flood insurance program that has left many homeowners after Sandy stranded," Menendez told 1010 WINS. "We have been working very hard to get FEMA to act in a different way, one that is fair to homeowners."

He said the agency has committed to take administrative action to penalize insurance companies that both over and under-pay policy holders. Menendez will convene a task force that will begin to meet in the coming weeks.

"While we certainly understand the need to protect taxpayers from waste and fraud and abuse, we equally want to protect homeowners from getting swindled out of money they deserve," he said.

Listen to NJ Lawmakers Say More Help Coming To Homeowners Struggling After Sandy

As WCBS 880's Levon Putney reported, FEMA is also taking steps to keep insurance companies from shopping for engineer reports on claims so as to bolster their reason for not paying homeowners as much to cover damage.

"I call this the switchertoo to deny you," Menendez said.

FEMA has also committed to reopen and consider appeals from 270 policyholders who suffered damage from Sandy but had their appeals dismissed because they missed a deadline.

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