Insurance Companies and Sandy

I was watching the news this morning and there was a woman on Staten Island who was having a difficult time with her insurance company which caused me to do an Internet Search.

Sen. Schumer Warns Insurance Companies Against ‘Playing Games’ With Sandy Victims

Per this article Sandy was classified as a tropical storm when she reached the coast of New Jersey rather than a hurricane.  If classified as a tropical storm the homeowner's deductible is $1000 but if classified as a hurricane the deductible is $20,000.

Per the article the insurance companies are pressuring the NOAA (National Oceanic and Atmospheric Administration) , the weather agency, to reclassify Sandy as a hurricane to be able to change the amount of deductible that the homeowners have to pay substantially.

Haven't the people in Sandy's path been through enough without having to fight their insurance companies especially when the NOAA has already classified the storm?

Is it the job of insurance companies to protect the insured or their stockholders?