NY to Aid Sandy Victims With Flood Insurance Woes

NEW YORK (AP) -

New York will use part of its share of billions of dollars in federal Superstorm Sandy aid to “fully compensate” storm victims who had insurance claims denied because of a hard-to-understand rule barring payments for damage caused by earth movement during a flood.

Hundreds of homeowners with cracked foundations and buckled floors have had insurance claims denied because of a FEMA rule barring payments if the damage was the result of “the flood contributing to differential movement of supporting soils.”