homeowners or small business insurance applicants do not even think to ask about flood insurance. Further, most agents (at least before Irene) do not think to ask if the applicant wants or needs flood insurance. Private flood insurance is extremely expensive, but homeowners in a floodplain are able to purchase flood policies through the National Flood Insurance Program (NFIP) (managed by FEMA). Because NFIP insurance is a relatively low cost option available to homeowners and small business owners who otherwise wouldn’t be able to get insurance, what it covers and doesn’t cover is very strict. See the FEMA website (
http://www.fema.gov/national-flood-insurance-program) and the State of Vermont website (
http://www.dfr.vermont.gov/insurance/insurance- consumer/vermont-flood-information) for more information on what you can expect and not expect to be covered under the NFIP policy. In any case, whether the insured has a flood policy or not, she should contact her agent immediately. Lastly, even in the event that the person you are assisting does not have flood insurance, they may have “water damage” coverage under their homeowner’s policy.
The homeowner will be expected to take reasonable steps to prevent further
damage and safety risks. If the homeowner is going to make any repairs in order to mitigate the damage to the property or to ensure safety before an adjuster is sent out to the property, he should take pictures of the damage. Advise the client to take pictures of the scene of the damage (an entire room or the entirety of the exterior of the property) in addition to close-up pictures. The pictures should be labeled and dated as soon as possible. If, prior to the adjuster’s inspection, the homeowner begins making repairs or spends money to prevent further damage, he should keep accurate records of what he spends. All receipts and invoices should be maintained. The homeowner should also separate items that may be cleaned and/or repaired. Lastly, before discarding any items that the policy holder plans to submit a claim for as damaged or destroyed, the homeowner should check with his insurance agent.
The client should ask the insurance company (or ask the agent/broker to ask the
insurance company) to send an adjuster out to assess the damage as soon as possible. This assessment will start the process rolling on any claim. The client will receive notice of pay-out for insurance and be required to sign a final loss pay-out agreement. If the client is unhappy with the pay-out, however, she need not accept the assessment of the insurance carrier.
The client can appeal the findings of the insurance carrier. First, in writing,
demand the reasons for the claim denial or the limited recovery. Draft an appeal explaining why the amount offered is unacceptable. To support the appeal, the client should provide as much documentation as possible to show that the insurance adjuster erred in the analysis of the level of damage. Provide pictures taken immediately after the disaster, receipts or invoices for repairs already completed or estimates for repairs needed on the property. The client can provide alternative documentation assessing the level of damage. For instance, after a flood, the town zoning administrator or health officer may have completed a substantial damage analysis. The listers may have reassessed the property and documented a new value for the structure and (in some flood cases) the land as well. Lastly, the client can hire his or her own adjuster. Vermont Law defines a
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