In the aftermath of Superstorm Sandy, many insurance policyholders were denied coverage after engineering reports determined that their damage supposedly pre-existed the storm or was due to natural earth movement rather than raging floodwaters. Other storm victims say their insurance companies failed to include coverage for sales tax and that their adjuster estimates vastly undercounted how much it would actually cost them to rebuild their homes. Now the unfolding scandal and the complaints of those Sandy victims have led to a growing number of lawsuits and congressional hearings, forced FEMA to conduct an internal investigation, and sparked calls for substantial reforms to the National Flood Insurance Program.
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