 | Severe Storms Create Widespread Flooding in Midwest I.I.I. Provides Tips to File a Flood Insurance Claim
INSURANCE INFORMATION INSTITUTE
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New York: 212-346-5500; media@iii.org
Washington, D.C.: 202-833-1580
NEW YORK, May 9, 2007 — Severe spring storms, including the one that produced the massive tornado that devastated Greensburg, KS, are also causing widespread flooding throughout parts of the Midwest. Those who suffered damage to their homes and businesses should contact their insurance agent or company representative to begin the claims filing process, according to the Insurance Information Institute (I.I.I.).
Flood insurance for homes and businesses is covered under an insurance policy provided by the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) and is sold through homeowners and business insurance agents and company representatives. Coverage for flood damage to cars is available under the comprehensive portion of a standard auto insurance policy.
To file a flood insurance claim, contact your agent or insurance company immediately. The company will assign a claims adjuster to help you evaluate your loss and file your claim. Have the following ready:
- The name of your insurance company
- Your policy number
- A telephone number and/or email address where you can be reached at all times
Separate damaged from undamaged property. Do not throw out damaged property before your adjuster has seen it, unless it may be a health hazard or could impede local cleanup. If objects must be discarded, take photos and keep samples to help substantiate your claim. Take photos of standing water, both outside and inside your home or business. Photograph everything—from structural damage and flood water levels on building exteriors to building interiors and contents—to help prepare visual documentation of what has been damaged by the flooding.
Make a list of all flood-damaged or lost items. Work with your adjuster to itemize your claim and calculate the value of the destroyed items.
File a Proof of Loss within 60 days of the flood. Your official claim for damages is called a Proof of Loss. This sworn statement, made by you, substantiates the insurance claim and is required before the NFIP or insurance company can make a payment. Your insurance company’s adjuster should give you the form; however, it is your responsibility to provide your insurance company with the completed and signed Proof of Loss form within 60 days of the loss. You must include a detailed estimate to replace or repair the damaged property, which you can obtain from your adjuster. You and your adjuster should come to an agreement about the scope of damage and what needs to be repaired or replaced.
Your flood insurance claim is payable after:
You and the insurer agree on the amount of damages.
The insurer receives your complete, accurate and signed Proof of Loss. “Insurance companies follow claims filing procedures set forth by the NFIP,” said David Maurstad, director of FEMA's Mitigation Division.
According to FEMA, floods, including inland flooding, flash floods and seasonal storms, occur in every region of the United States. More than 20 percent of all flood insurance claims are filed in low-to-moderate flood-risk areas, the I.I.I. has found, and too few consumers realize that affordable flood insurance is available through the NFIP.
“Ninety percent of all natural disasters in the U.S. involve some type of flooding so everyone should consider purchasing flood insurance,” said Loretta Worters, vice president, I.I.I., who cautioned there is a 30-day waiting period for flood insurance policies to go into effect.
The I.I.I. reminds you to consider the following facts about flood insurance:
- Standard homeowners and renters insurance does not cover flood damage: Flood damage is excluded under standard homeowner’s policies, although it is covered under the comprehensive section of a standard auto insurance policy. Only a flood insurance policy, available to homeowners and renters through the federal government, will cover flood-related losses.
- Flood insurance is easy to purchase: Federal flood insurance policies can be purchased directly from an insurance agent or a company representative, and are available to communities that participate in the National Flood Insurance Program. Nearly 100 insurance companies write and service NFIP policies. In order to find an agent or company servicing your area, visit www.floodsmart.gov or call (888) 379-9531. Flood insurance is available on a replacement cost basis for the structure of the home and on an actual cash value basis for personal property.
- Flood insurance is affordable: The annual premium for a residential NFIP policy starts at $112 per year, according to FEMA, and increases according to the level of flood risk and amount of coverage needed. The maximum coverage amount is $250,000 for the structure of the home and $100,000 for the contents of the home.
- There is a 30-day waiting period before a flood insurance policy takes effect.
- It is easy to assess your flood risk: More than 20,000 communities in all 50 U.S. states and territories voluntarily participate in the NFIP, encompassing nearly all properties in the nation’s high-risk flood zones. Enter your address at http://www.floodsmart.gov/floodsmart/pages/riskassesment/findpropertyform.jsp to determine your level of flood risk.
- Excess flood insurance policies add an extra layer of coverage: A growing number of private insurers have begun offering excess flood policies, intended to provide water damage protection to homeowners over and above the coverage provided by the NFIP policies.
- Without insurance, relief from floods primarily comes in the form of loans: If your community is declared a disaster area, no-interest or low-interest loans are usually made available by the federal government as part of the recovery effort. These loans are just that—loans—and must be paid back. Obtaining a flood insurance policy is the only way to protect yourself fully from the cost of flooding.
For more information on flood insurance, visit the I.I.I. Web site at http://www.iii.org or the NFIP Web site at http://www.floodsmart.gov . The Institute for Business & Home Safety also has a brochure, Protect Your Home Against Flood Damage, which is available by on their Web site at http://www.ibhs.org/publications/view.asp?cat=75&id=646 .
If you are in radio and plan to do a story on this topic, feel free to download the associated I.I.I. audio file available at http://www.iii.org/media/radio/prfloodclaims/ .
The I.I.I. is a nonprofit, communications organization supported by the insurance industry. |
