I really do not know what incentives there would be for a company to wrongfully deny claims under a Federal funded program. They stand to loose close to nothing...funds come from the government.
Adjuster's pay for their services under Flood policies is contingent on the amount of the claim. The higher the payment recommendation, the higher the fee. As of 2008 http://www.fema.gov/media-library-data/20130726-1724-25045-1760/nfip_2008_adjuster_fee_schedule.txt :
NFIP Fee Schedule
For Claims with Dates of Loss on or after September 1, 2008
Claim Range Fee
Erroneous Assignment $70.00
Closed Without Payment (CWOP) 275.00
.01 - $1,000.00 375.00
1,000.01 - 5,000.00 600.00
5,000.01 - 10,000.00 800.00
10,000.01 - 15,000.00 925.00
15,000.01 - 25,000.00 1,025.00
25,000.01 - 35,000.00 1,175.00
35,000.01 - 50,000.00 1,400.00
50,000.01 - 100,000.00 3% but not less than $1,600
100,000.01 - 250,000.00 2.3%, but not less than $3,000
250,000.01 and up 2.1%, but not less than $5,750
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