New York State to Aid Sandy Victims With Flood Insurance Woes

The state will compensate flood insurance claims denied because of a rule barring payments for damage caused by earth movement during a flood

Saturday, Sep 28, 2013  |  Updated 12:20 PM EDT
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NY State to Aid Sandy Victims With Flood Insurance Woes

AP

A Christmas wreath is displayed on the second floor porch railing of a home adjacent to the fire-damaged zone in the Breezy Point section of New York, Friday, Dec. 7, 2012. Over 100 homes were burned to the ground during Superstorm Sandy. (AP Photo/Mark Lennihan)

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Gov. Andrew Cuomo says he will use part of New York's share of federal Superstorm Sandy aid to "fully compensate" storm victims who had flood insurance claims denied because of a rule barring payments for damage caused by earth movement during a flood.

  The governor says hundreds of homeowners with cracked foundations and buckled walls have had insurance claims denied because of the rule. The issue is also affecting homeowners in New Jersey.
 
Many of those houses were damaged when the rising floodwaters destabilized the ground beneath their foundations.
 
The governor said it "simply does not make sense" that those people would be denied help.
 
Cuomo says he will use money from the $51 billion Sandy aid bill to pay claims that have been turned down because of the exclusion.

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