NY To Aid Sandy Victims With Flood Insurance Woes

Gov. Andrew Cuomo says he will use part of New York's share of federal Superstorm Sandy aid to "fully compensate" storm victims who had flood insurance claims denied because of a rule barring payments for damage caused by earth movement during a flood.

New York Governor Andrew Cuomo (Brad Barket/Getty Images)

The governor says hundreds of homeowners with cracked foundations and buckled walls have had insurance claims denied because of the rule. The issue is also affecting homeowners in New Jersey.

Many of those houses were damaged when the rising floodwaters destabilized the ground beneath their foundations.

The governor said it "simply does not make sense" that those people would be denied help.

Cuomo says he will use money from the $51 billion Sandy aid bill to pay claims that have been turned down because of the exclusion.