NJ senators question unsettled Sandy insurance claims

TRENTON, N.J. (WPVI) -- Both U.S. senators in New Jersey are leading a renewed effort to resolve thousands of unsettled insurance claims related to Superstorm Sandy.

Private companies handle the cases for FEMA.

An official for the agency has confirmed at least one potential fraud case from late 2013.

But the senators said they were never notified. And they believe many more homeowners were denied claims based on altered engineering reports.

Senator Cory Booker says, "Many people lost everything. And then when it came to getting collection from their insurance companies, they find out that the insurance companies were playing games."

However, insurance industry spokesman Robert Hartwig says, "The insurer does not earn money by reducing the value of the claim to the policy holder. And so there's no financial incentive for an insurer to do this."

More than 1,100 Sandy victims in New Jersey are suing their insurers and FEMA for underpayment claims filed after the 2012 storm.