FEMA Statement Stalls Decision on ‘Placeholder’ Proofs of Loss in Superstorm Sandy Cases

NEW YORK — The Federal Emergency Management Agency has weighed in on the issue of so-called “placeholder” proofs of loss in Superstorm Sandy cases, urging a New York federal court to dismiss cases in which placeholders were filed, but adding that their existence will not be a bar to settlement of the claims.

In an Aug. 7 brief filed in U.S. District Court for the Eastern District of New York, FEMA indicated that the placeholder proofs submitted in cases brought against flood insurers do not comply with the requirements of the Standard Flood Insurance Policies under which they are seeking …