(Bloomberg) — Federal disaster assistance officials have begun reaching settlements with more than 1,000 Hurricane Sandy victims who allege they were unfairly denied flood insurance claims or compensated too little.

Lawyers for property owners told federal magistrate judges overseeing lawsuits in Brooklyn and Central Islip in New York in a filing Monday that settlements have already been reached in 160 cases. The accords are the first wave of hundreds more expected after some homeowners complained that companies that help provide flood insurance rejected claims based on fraudulently manipulated engineering reports of storm damage.

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