FEMA

It's the latest step in a growing controversy after thousands of homeowners said insurance companies lowballed damage estimates and insurance insiders called the appeals process "rigged."

As Sandy victims and FEMA work to resolve accusations of falsified damage estimates, some are questioning how the agency can be both a flood insurance provider and a regulator of flood insurance.

Over two years after Superstorm Sandy flooded homes in New Jersey and New York, legal battles still rage over insurance claims to repair damage. But insurance companies aren't playing by the rules.

Federal funds are supporting two different disaster-prevention approaches — coastal retreat, or people leaving flood zones, and coastal defense, or building infrastructure to protect at-risk areas.