NY Lawmaker Proposes Alternative to Federal Flood Insurance

Homeowners in New York would have a new alternative to federal flood insurance, under legislation being introduced in Albany this week. Assemblyman Phil Goldfeder said it would create a New York Flood Insurance Association, that would protect families from unfair flood damage claims practices. He said after Sandy, insurance companies "shirked their responsibilities" to policy holders.

"We were victimized by Hurricane Sandy. Sadly, we were re-victimized by the insurance companies," he said. "There were some companies that falsified engineering reports in an effort to deny claims, to deny our families the funding they deserve."

Companies that provide flood insurance in New York would be required to join the new association. Assemblyman Goldfeder, who represents areas hard-hit by Sandy, including the Rockaways, said the new association will bring accountability, and more economical and fair policies to homeowners. He said anyone in New York who needs flood insurance would be eligible for the new policies.

A report on 60 Minutes on Sunday detailed the cases of doctored flood damage reports, including that of a Rockaway Beach couple. The report said U.S. Senators from New York and New Jersey would call for hearings on the flood insurance scandal.