Flood Insurance Claims-Be the Calm After the Storm: Facts Every Agent and Consumer Needs to Know

After a community has experienced a flood, restoring homes and businesses can be a long and difficult process. While the cleanup process can seem overwhelming at best, a careful, orderly approach will help your insured settle their insurance claims sooner.

Following are some recommendations to help speed the cleanup process and assist adjusters in expediting claims:

Submit the claim as soon as possible
• Although National Flood Insurance Program (NFIP) regulations require an insured submit a Proof of Loss within 60 days of the loss, the sooner the better. NFIP guidelines require adjusters contact their flood loss claimants within 72 hours of the time the notice of loss is received.

In most cases this time frame is met. However, if telephone lines are down or if the insured has vacated the premises, it may take longer.

Prevent further damage
• Property owners should put temporary tarps over roof leaks and cover any cracked or broken windows. It’s also important that they take pictures of everything “as is,” indoors and out, to show the water level and extent of damage.

Complete damage inventory
• An insured should make a room-by-room inventory of missing or damaged items. After the inventory is complete, they should separate the damaged from the undamaged property for the insurance adjuster’s examination.

Additionally, the insured should locate receipts and other documentation, especially for major purchases.

Remove wet items
• Advise your insured to move wet upholstered furniture, draperies and other large items to a garage for storage until the owner decides whether they can be cleaned, reupholstered or salvaged.

• Wet carpet and carpet padding should be removed, but it’s important to save a large piece of both to show the insurance adjuster. Once this has been removed, it’s best to get rid of any standing water and mud. Then clean the floor with soapy water and disinfectant.

• Damaged property that presents a health hazard or may hamper local cleanup operations should be disposed of. However, be sure your customers can adequately describe the discarded items so that when the adjuster examines the losses and records, these articles are included in the documentation.

If your insured has specific coverage questions, please speak cautiously or refer them to the adjuster. Remember, flood policies are unlike any other standard insurance policy.

NFIP-certified claims adjusters are expected to review policy coverage and answer any questions about claim handling, timelines, and payment procedures.

Policyholders can expect adjusters to inspect the loss and file a preliminary report within 15 days from the date of assignment. This report summarizes the adjuster’s initial findings, sets reserve amounts for building and contents damage, and states whether an advance payment is recommended. Keep in mind that the severity of the event directly affects the time it will take for adjusters to complete their activities.

Once the adjuster has inspected the property, he or she will send the estimates along with a Proof of Loss to the insured for signature. Most flood claims only require one inspection.

If all parties are in agreement, the insured signs the Proof of Loss and returns it to the adjuster. The adjuster will then submit a Final or Closing Report to the company. If however, the policyholder has questions, the adjuster is expected to assist the insured as necessary to resolve the claim.

NFIP adjuster guidelines state that all Final Reports should be submitted to the WYO carrier within 72 hours of the insured signing the Proof of Loss. Policyholders can then expect a two- to three-week waiting period before receiving payment for the claim.

We all know that flood losses can be traumatic, and personal safety is always the most important consideration. However, being well-prepared for filing a claim can help speed the claim settlement, which in turn will help get things back to normal sooner for everyone involved.

For more information on flood dangers, flood safety and flood insurance, visit www.floodfacts.com. Bankers is a Write-Your-Own flood carrier serving independent agents, (800) 627-0000 x 4900.

Topics Agencies Profit Loss Claims Windstorm Flood