Last day for Sandy claims review: 5 things to know

Time is running out for victims of superstorm Sandy to challenge insurance awards they believe cheated them out of thousands of dollars.

Today is the deadline to request a review through the Sandy Claims Review process, but only about 20,200 flood policyholders in the entire Sandy-affected zone have applied, as of Sept. 8, according to the Federal Emergency Management Agency. The review process opened on May 18.

FEMA released some data on the first 715 offers, which are expected to pay out a total of $7.3 million, as of Friday:

The average payment will be $15,994;

The largest sum authorized was $103,678, and the smallest was $131;

256 cases, or 36 percent, were denied additional payment;

These numbers don't include "a small handful" of policyholders who have already been paid.

About 74,000 homeowners in New Jersey filed claims after Sandy, meaning there are still scores of policyholders who could apply but have not. Here are a few things to consider if you are one of those on-the-fence homeowners:

1. How to apply

You can call the Hurricane Sandy Claims Review Center at 866-337-4262 — which is now open between 8 a.m. and 9 p.m. — or visitwww.fema.gov/hurricane-sandy-nfip-claims. Either way, you'll have to answer a few questions to verify your eligibility.

To get started, you'll need the name on the policy, the address of the insured property, and the policy number.

2. How it works

After a request is filed, an adjuster (hired by FEMA) will contact you and ask you if there is any additional documentation, such as receipts or engineering reports, that might bolster your case.

The adjuster will then take another look at the claim, plus any new materials, and make a recommendation for additional payment, if it is justified. If you disagree with that recommendation, you can request another review by an independent third party.

If the review finds you were underpaid, FEMA will direct the insurer to cut you a check. You will need to sign a new Proof of Loss to verify that you accept the payment. Then the case will be closed.

The whole process is supposed to take 90 days from start to finish, but U.S. Sen. Robert Menendez, D-N.J., noted in a letter to FEMA last month that some residents had waited 110 days "and still do not have their results, let alone a check in hand."

3. You don't need a lawyer, but maybe you'll want one

The program was designed to be navigated without an attorney, but many Shore residents are apprehensive about engaging with FEMA again without a paid advocate. But the key word there is "paid" — your attorney's fee will be somewhere around 30 percent of your new award.

If that's the source of hesitation, you can request a review to beat the deadline and then retain an attorney — if that's what you decide — before you start sharing information with FEMA.

4. Lawmakers are asking for an extension

Local, state and federal lawmakers, along with the nonprofit sector, has been lobbying FEMA to give Sandy victims more time to sign up. As of Tuesday morning, the agency hadn't acquiesced.

Unless FEMA changes its mind, you have until 9 p.m. to call the call center or 11:59 p.m. to make a request online.

5. The state says this will not affect your RREM grant

There has been a lot of confusion surrounding the claims-review process and what impact it may have on a previously determined award from the Rehabilitation, Reconstruction, Elevation and Mitigation (RREM) program.

In the absence of any official position, speculation abounded that accepting more insurance money through the claims-review process would mean returning an equal amount of the RREM grant. That left many wondering if it was worth it to apply if any new money would be considered a "duplication of benefit" with RREM.

The state eventually told the Asbury Park Press in July that the Christie administration would not seek to recapture RREM money that was displaced by additional insurance payments. The New Jersey Department of Community Affairs has told FEMA not to include the DCA on any checks that are connected to the claims review process, according to DCA spokeswoman Lisa Ryan.

The U.S. Department of Housing and Urban Development, which supervises use of the disaster money that pays for the RREM program, won't say whether it agrees with the state's decision, however.

So it comes down to this: If the feds decide they want this money back, they will come after the state — not the individual homeowners — and New Jersey is pledging that it will not pursue homeowners for RREM overages that arise as result of the claims review process.

Russ Zimmer: 732-557-5748; razimmer@gannettnj.com