Schumer pushes FEMA to change insurance deadline

Sen. Charles Schumer is urging the Federal Emergency Management Agency to extend the statute of limitations for homeowners to file lawsuits against their flood insurance companies.

At a press conference on Tuesday on East Hudson Street, Schumer called on FEMA to change the deadline because, he said, as it is currently defined, it is too ambiguous; because it conflicts with the recently postponed deadline to submit “proof of loss”; and because policyholders with dramatic losses need more time to gather evidence.

According to FEMA, the statute of limitations for filing a suit is one year from the first denial of a claim, Schumer said. About 20,000 Hurricane Sandy victims on Long Island and Staten Island are still working to settle their insurance claims, and their time is quickly running out. However, many are still unsure of exactly how much time they have left.

Local attorney Denis Kelly said that some people received denial letters from their insurance companies, and can easily pinpoint that date. Others who are contesting their settlements, however, were never denied; they simply were not satisfied with their reimbursements, and for them that one-year date can be difficult to determine.

Additionally, Schumer said, the initial denial of a claim sometimes occurs in an insurance adjuster’s report, which the homeowner may not see. Insurance companies delay the process, he added, to run out the clock on homeowners and remove the threat of lawsuits.

“Once an insurance company knows you can’t sue them, they take advantage of you,” Schumer said. “Even if you don’t go to court, the fact that they know you can go to court gives these people some bargaining power.”