(Bloomberg) -- Wright National Flood Insurance Co. and U.S. Forensic LLC, an engineering firm, were sued by New York homeowners who claim the companies conspired to manipulate reports and avoid paying for damages from Hurricane Sandy in 2012.
Wright, which provides coverage on behalf of the government’s National Flood Insurance Program, “systematically sought to underpay legitimate claims” through the use of “fraudulent engineering and claims handling analysis” by U.S. Forensic and other firms, policyholders alleged in a complaint filed Nov. 21 in Central Islip, New York, federal court.
Owners of a storm-battered home in Long Beach, New York, said the insurer rejected their claim using a baseless engineering report. They are seeking to represent potentially hundreds of other policyholders whose claims are alleged to be either denied or underpaid based on similarly-conducted reports.
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