The governor said excessive paperwork, inadequate staffing, cumbersome audits and the threat of financial penalties to carriers and adjusters is interfering with the timely issuance of payments, prolonging the suffering of the thousands of New Jersey residents hurt by Sandy.
"Our local insurance companies have been doing a great job of settling and moving these claims very quickly," Christie said. "The national flood insurance plan has stunk."
"I've been as patient as I'm going to be," the governor added. "They need to get more people into New Jersey, they need to get to work, they need to get to processing these things. People need to know how much money they're going to have."
Sandy damaged or destroyed about 346,000 housing units in New Jersey, resulting in estimated damage and future storm mitigation costs of $37 billion.
The state and charities are waiting for the federal settlements so they can determine how much to award in grants to help people rebuild, the Republican governor said during a briefing in the heavily damaged Jersey Shore community of Union Beach.
Christie said he is asking New Jersey's congressional delegation to pressure the Federal Emergency Management Agency to improve the performance of the flood insurance program. A FEMA spokesman said he had no immediate comment.
The governor complained that only about 30 percent of flood claims have been settled, or closed, compared with 85 percent of homeowners' claims. An estimated 430,000 other insurance claims have been filed by residents and businesses.
He said "it is imperative that insurance claims be brought to final resolution so that residents can make critical decisions on if and how to rebuild."
While he was expressing frustration with the pace of claims settlements, Christie at the same time urged residents to stay patient.
"This is an unprecedented set of circumstances in the state of New Jersey, so we have to have patience with one another," he said. "I'd like to come here or to any of the other communities that have been affected and wave a magic wand, but I can't. It's going to take time, and it's going to take effort."
Several Christie administration officials had set up a mobile office inside the local firehouse to assist residents who are having trouble getting answers from insurers or governments. There was no shortage of takers.
Eduardo Rocha, 42, who was walking with crutches as the result of injuries sustained in an auto accident, had come to ask FEMA how high he would have to raise his house - 2 feet - and to apply for a $30,000 grant to help defray the cost, which hadn't yet been estimated.
James Scott was clutching a handful of insurance settlement papers while standing in line on behalf of his 74-year-old mother, whose heavily flooded home had been taken down to its studs. Her flood insurance claim had been settled for $38,000 - $50,000 less than the estimated cost of rebuilding. The mother, Theresa Scott, was staying with another son in South Carolina until her own home could be repaired.
Christie also announced that the state Department of Banking and Insurance will start requiring private insurers to respond within five days to Sandy-related complaints filed with state. Insurance companies currently have 15 business days to respond to the department.