The insurance industry is built on preventing disasters and assisting people in
responding to them when they do occur. We recognize during these trying times
that our industry helps with lives and livelihoods, and we have consolidated
tips and frequently asked questions to help affected home owners, agents, and
other property owners who should take immediate steps to begin recovering their
losses. This matter is more complicated and challenging given the enormous
impact of hurricanes and floods during this century.
Two important points to remember is that your flood damage claims will
likely be handled by one insurance company (assuming you have this important
coverage) and your wind damage losses will be handled by another insurance
company.
IRMI offers a host of insurance tips that individuals, corporations, and
small-business owners affected by these deadly hurricanes and floods can use.
The following are some frequently asked questions and available resources about
property and auto insurance matters to consider. Please note that the
IRMI publications referenced below require a subscription fee. Contact IRMI at
1–800–827–4242 for access.
If I am an IRMI subscriber, can you provide online links to relevant
information regarding hurricane and flood insurance losses?
The following are links to some discussions in Personal Risk Management
and Insurance that pertain to hurricane and flood coverage and claim
situations.
The following are some links in Commercial Auto Insurance that
pertain to physical damage coverage to commercial vehicles.
The following are links to some discussions in Commercial Property
Insurance that pertain to hurricane and flood coverage and claim
situations.
Does IRMI have discussions for subscribers related to claims and claim
filing tips?
The following are links to some IRMI discussions related to claims
situations.
When should I contact my insurance agent or insurance company about my
property damage?
If you have—or suspect that you have—property damage to your home, business,
or automobiles, notify your insurance agent as soon as possible with whatever
details you can provide. In most cases, your agent will have a toll-free phone
number for you to contact your insurance company directly. Make sure the
adjuster understands that this call serves as notice of your claim. A
follow-up email confirming such notice is also in order. Keep a written log of
whom you talked to, his or her title, the date, action items, and the gist of
the discussion. This log is important if you later face problems or delays and
need to substantiate your side of the story.
I can't remember whether I have flood insurance. How do I find out for
sure?
Ask your insurance agent if you purchased this coverage. Once you have
determined that you have this protection, notify the insurance company that
services your flood insurance policy. Keep your policy number handy when you
call this company. You can also reach the Federal Emergency Management Agency
(FEMA) directly at 1 (800) 621–3362. The following is a helpful FEMA website
that gives details on how to file a flood insurance claim.
What if I have a flood loss but no flood insurance? What resources are
available to help me?
Unfortunately, the vast number of people in many areas impacted by
hurricanes do not have flood insurance. And several recent hurricanes have
destroyed large swaths of homes and businesses in many areas that were NOT in a
high-risk flood zone. Impacted people and businesses without flood insurance
may be eligible for low-interest loans from the federal government. The US
Small Business Administration (SBA) is responsible for providing affordable
financial assistance to homeowners and renters located in a declared disaster
area. Home owners may apply for up to $200,000 in low-interest loans to repair
or replace their primary residence to its predisaster condition. More
information is available on the SBA website; see the link below.
In addition, FEMA offers extensive information on its disaster assistance
program; see the link below.
Does my personal or commercial auto policy cover flood and wind losses to
my vehicles?
Flood and wind losses are covered under the personal auto policy or business
auto policy as long as you have purchased other-than-collision (formerly called
comprehensive) coverage for the vehicle. Check your declarations page or call
your agent to determine if you have this coverage, which is typically subject
to a deductible.
When should I inspect my home or business?
Caution is urged here; you should not return to your property until
municipal authorities have declared the area to be safe from downed power
lines, heavy debris, and high water. You can call 311 to see if it is
permissible to return to your home or check your commercial property. In
addition, access your county's emergency management website for updates and
the status of your neighborhood. Many sites also have information on towed
vehicles.
What about my additional living expenses or business interruption
expenses?
If you have a windstorm loss, the standard homeowners policy
provides additional living expenses, which are often 20–30 percent of your
dwelling limit. So, keep track of your additional expenses, such as hotel rooms
and restaurant charges. Unfortunately, if your loss is solely due to
floodwaters, additional living expenses are not covered under the National
Flood Insurance Program (NFIP). These expenses may be covered if you have
private flood insurance.
Note that FEMA does offer "critical needs assistance." This aid is
a one-time $500 payment per eligible household for those with unmet critical
and financial needs. Details are available at the link below.
For businesses suffering a windstorm loss, a commercial property policy can,
and often does, provide coverage for resulting loss of income or increased
expenses. However, the NFIP flood insurance policy does not provide coverage
for business income and expense losses resulting from a covered flood loss. In
some cases, coverage for business interruption or extra expense resulting from
a flood is added to a nonstandard commercial property policy, even when the
flood damage itself is insured under the flood insurance policy. In those
cases, a relatively high deductible (such as $100,000) usually applies. Also,
the ISO commercial flood insurance policy includes a time element coverage
option that provides business income and extra expense coverage if a limit is
shown in the declarations.
If my wind coverage is through a state property insurance pool or
association, what are some tips for filing claims?
Your agent will be able to tell you whether wind damage is covered under
your homeowners or commercial property insurance policy or through your
state's wind or property insurance pool. The links below to various state
windstorm or property insurance association claim pages each provide tips for
filing wind damage claims.
What if I am dissatisfied with the claims process? What are my
options?
First, make sure you are providing all the information and documents your
insurance company requests in a timely manner. Also, keep a well-documented log
of the entire claims filing process. Items to remember in the log are the (a)
measures you have taken to assist your insurance company, (b) information you
provide, (c) adjuster names and titles with whom you are interacting, and (d)
dates of discussions. If you have problems or unreasonable delays, ask to speak
to a supervisor or manager. Another option to consider, prior to hiring an
attorney, is contacting the appropriate state department of insurance to file a
formal complaint (this is free and often helpful). See the insurance complaint
sections of various state websites at the links below for more details.
How do I go about finding a reputable contractor to repair or rebuild my
home or small business?
Consider the following tips for home owners or small-business owners when
hiring contractors.
- Be wary of contractors who solicit business door-to-door or via cold
calls. In addition, contractors should be avoided if they quote a price that
will automatically go up the next day or week if the property owner does not
accept it immediately.
- Request recommendations from friends, family members, and business
associates for reputable contractors who have performed excellent work for
them.
- Ask the contractor for a written estimate that includes any oral
agreements he or she makes in this process. The estimate should contain a
line-by-line breakdown of costs, including materials and labor. In addition,
there should not be a charge for an estimate. Avoid dealing with contractors
who attempt to charge for estimates.
- Obtain at least three estimates along with the names and phone numbers of
two former customers of the contractor. The property owner should contact
these customers and ask about the work performed.
- Verify that the contractor is licensed, bonded, and properly insured.
Obtain certificates of insurance for workers compensation and general
liability policies from the contractor.
- Contact the Better Business Bureau (BBB) to see if complaints have been
filed against the contractor. This step can be performed via the BBB's
website.
- Avoid contractors who ask for payment for the entire job before the work
begins. The standard practice is to pay 33 percent of the job up front.
- For major work, get an experienced attorney to review the construction
contract.
What are some additional disaster relief resources available?
The following are links to some further disaster relief resources you may
find helpful.
