NEW YORK (TIP): To the surprise of Ranjit Singh Mahmatpur and his brother Gurmeet Singh, the insurer said they were not covered because the damage was caused by a flood – not a hurricane. Because they don’t have flood insurance, they have no luck.

Thousands of families still struggling in the aftermath of Sandy are learning that some insurance companies don’t seem to think the storm was a hurricane. Singh brothers’ broker told them that their home in Brighton was covered for hurricanes, so when Sandy trashed the place, they assumed it will be OK. To their surprise, the insurer said they weren’t covered because the damage was caused by a flood – not a hurricane.

Because they don’t have flood insurance, they don’t se any help. Homeowners in low-lying areas across the city have found themselves in the same situation. They’re turning to the feds in droves after their insurers won’t pay up. About 220,000 homeowners in New York City and Long Island have registered for emergency housing cash from the Federal Emergency Management Agency.

FEMA has approved $557 million for homeowners. Some of the money is for temporary rent payments, but much of it is for emergency home repairs not covered by insurance. The insurance gap is an emerging issue.