FEMA: Business of Disaster

NPR and PBS’s Frontline ran exposes of the treatment of the victims of 2012’s Hurricane Sandy by FEMAs flood insurance program yesterday.


Doug Quinn in front of the lot where his
house use to stand, his is a horror story.

The heart of the issue is how private insurers, who are paid by FEMA to implement the program, are handling claims by flood victims.

The charge is that the insurers are colluding with FEMA insiders and systematically denying or undervaluing the claims.

Why, you may ask, would a private insurance company who is only processing claims  not actually paying them out, trying to short-change flood victims?

Because they don’t want the program put under such financial stress that the government would change their sweet, sweet fee structure they charge FEMA for their services.


FEMA itself doesn’t even know how much profit the insurers make off the flood insurance program or the appeals process being challenged by homeowners and their lawyers.

A day before NPR and Frontline aired their programs, FEMA announced they were changing the appeals process for claimants who felt they didn’t receive the proper compensation.

Smell that? Something fishy just washed in with the rising tide of controversy and it stinks like crony capitalism.

6 Comments on FEMA: Business of Disaster

  1. I worked for FEMA Region 9 Hazard Mitigation program during the Clinton years. We worked closely with the flood program. You have no idea how corrupt the agency and full time civil servants truly are. Oh, there are good people, but most are no longer the solution but have become the problem.

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