The Federal Emergency Management Agency (FEMA) has extended the deadline for policyholders to respond to its offers under the Superstorm Sandy flood insurance claims review process.

Lack of responses

Last month, FEMA sent out a letter notifying policyholders, many of whom had been offered money from the claims review, but had yet to respond, that their cases would become inactive if they did not contact FEMA by July 31. The process already has resulted in hundreds of millions of dollars being paid out, but scores of insureds have not responded to FEMA's offers.

The deadline now has been extended to September 15, and FEMA has indicated that it would proactively try to reach these policyholders as well as allow some flexibility for policyholders beyond that deadline.

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