FEMA to review every Sandy flood insurance claim _ nearly 144K _ amid fraud allegations

Lifestyle and Budget Associated Press

Federal Emergency Management Agency officials have agreed to reopen and review every flood insurance claim filed by Superstorm Sandy victims.

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The review will involve approximately 144,000 claims and not limit corrective action to 2,200 that are currently in litigation.

The announcement comes following allegations of fraud involving the way some insurance companies assessed damage.

Sens. Robert Menendez and Cory Booker of New Jersey and Charles Schumer and Kirsten Gillibrand of New York met with FEMA administrator Craig Fugate on Wednesday.

Those who filed claims will receive letters from FEMA about the new review process. They'll also have access to their engineering reports.

A Sandy task force is being formed to evaluate the nation's flood insurance program.

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Insurers have denied any wrongdoing.