Flood insurance law hurting Sandy victims

A little-known provision in some Long Island homeowners’ flood insurance policies could stymie their claims to collect for superstorm Sandy damage. Advocates and lawyers for property owners say it’s a loophole for insurance companies and the Federal Emergency Management Agency that is based on semantics. But federal officials and the companies say they’re following the letter of the law and that there is ample precedent for the denials. At issue is the "earth movement" exclusion in standard flood policies. The exclusion denies payment for loss of property caused directly by earth movement, even if the movement was caused by a flood.