PHOTO: Brian Haughtaling last Thursday detailed the extent of the fraud committed by some flood insurance companies after Superstorm Sandy. Haughtaling and fellow attorney Bill Kelly urged Howard Beach policy holders at the Forum-organized Town Hall to file with the government by Sept. 15 to have their claims reviewed. Forum Photo by Michael V. Cusenza
The Federal Emergency Management Agency has set Sept. 15—less than two weeks from today—as the deadline for homeowners to have their Superstorm Sandy flood-insurance claims reviewed. And two attorneys who said that they have already recovered more than $55 million for their clients from fraud-addled FEMA once again implored an audience at a Forum-organized Town Hall last Thursday to re-file—because those who have already walked away with an average of a $107,000 settlement.
“Every single one of our clients was underpaid—a hundred percent,” said attorney Brian Haughtaling at the Old Mill Yacht Club on Cross Bay Boulevard. “You can’t swing a dead cat in the room and not hit someone who was underpaid.”
Bill Kelly, a Rockaway native and partner at McCarthy & Kelly LLP, added, “You got underpaid; it’s just a matter of how much.”
At the eye of the storm is a “60 Minutes” segment detailing how private engineering companies purposefully altered engineering reports so as to not fully reflect the true impact and damage caused by Sandy to New Yorkers’ homes, which led to the unjust denial or underpayment of flood insurance claims.
“Engineers just said they couldn’t stand by and watch this anymore,” said Haughtaling, a partner at New Orleans-based Gauthier, Houghtaling & Williams who fought FEMA after Hurricane Katrina and won.
“I’ve been suing insurance companies for 24 years,” Kelly added. “I’ve never seen anything like that.”
Hundreds of flood-damage reports were allegedly falsified, and both engineering firms and insurance companies are under investigation by the Department of Homeland Security Office of Inspector General and state Attorney General Eric Schneiderman for possible criminal conduct.
As a result, federal officials announced in March that FEMA has agreed to reopen and review every flood insurance claim—approximately 144,000—filed by Sandy victims, and not limit corrective action to just the 2,200 that were in litigation at the time.
Kelly also said that he and Haughtaling have been spreading the word in Howard Beach over the past month because “this area was extremely underserved, in terms of legal representation.”
The attorneys again urged those in attendance to tell neighbors about the deadline and what they have been able to recover for their clients. Additionally, Kelly and Haughtaling said Howard Beach homeowners who had a flood insurance policy when Sandy touched down should have a National Flood Insurance Program-trained engineer diagnose repair/rebuild cost.
Kelly and Haughtaling handed out a list of items policy owners need to be mindful of regarding reviewing their claims and dealing with FEMA and their insurance companies, including:
- Most homes had foundation damage
- Engineering denials were fraudulent
- Beware of the “earth movement” scam
- Beware of the “preexisting condition” scam
- Floor to ceiling sheetrock is covered
- Electrical systems must be replaced
- Mold is covered
- Warped floors are covered
- Beware of price fixing
- Most estimates omitted tax
- All siding is covered
- Matching carpet/floors/cabinets are covered
Anyone who has any legal questions regarding their claim should call (844) 33-SANDY, or log on to ghwlegal.com.
By Michael. V. Cusenza michael@theforumnewsgroup.com
