[StBernard] National Flood Insurance to Ease Claims Process

[Westley Annis]

September 20, 2005 11:32 AM
Flood insurance program to use simpler claims process

WASHINGTON - The National Flood Insurance Program will modify the way it
settles claims to expedite the response to those policyholders in
hurricane-stricken areas under a new policy announced today by Acting
Federal Flood Insurance Administrator David Maurstad. 

"The National Flood Insurance Program is working closely with the insurance
industry to speed the claims process and enable adjusters to help
policyholders get settlements quickly," Maurstad said. "For many Hurricane
Katrina victims, the effort to rebuild their lives begins with filing a
flood insurance claim." 

The NFIP is utilizing all available data on water depths, aerial imagery,
and information from underwriting files, to determine properties where it is
readily apparent that flood damage covered by the policy will exceed the
amount of insurance purchased. It will be possible to pay the policy limits
through dialogue with the insured and without waiting for a site visit to
adjust the loss. This process may be used when homes have been washed off
their foundations, affected for long periods by standing water, or when only
pilings or a slab remain. 

The NFIP has waived the usual requirement that the policyholder must submit
a proof-of-loss and instead where the policyholder agrees, will rely on a
report by the claims adjuster. The NFIP has urged insurance companies to
provide advance checks of around $3,000 to policyholders who carry contents
coverage. Adjusters have been instructed to assist policyholders in
developing a list of their contents and appliances damaged by flood waters.
Serial and model numbers are not needed, and a list of contents by major
grouping may be submitted, rather than a comprehensive list. 

Policyholders without important insurance documents can contact the NFIP's
flood insurance hotline at 1-800-427-4661 to get their policy information. A
listing of insurance company phone numbers, along with additional insurance
information, is also available at
www.fema.gov/press/2005/katrinainsurance.shtm. Insurance experts are also on
hand in most FEMA Disaster Recovery Centers to assist flood victims, in
person, with the claims process. Flood insurance claims adjusters have been
on the ground in Alabama, Florida and Mississippi assisting victims; and are
now moving into many affected areas of Louisiana. 

"Katrina is the largest flood disaster in our nation's history, and it
requires us to take a new look at how we process flood insurance claims,"
said David Paulison, Acting Under Secretary of Emergency Preparedness and
Response and Acting FEMA director. 

The NFIP has been in contact with the Insurance Commissioners of Louisiana,
Mississippi and Alabama, and will continue to maintain close communications
throughout the claims process. 

"The citizens of Louisiana need a fair and speedy process as they rebuild
their lives," said Louisiana Insurance Commissioner J. Robert Wooley. "It is
going to take everyone in private industry and in government working
together to accomplish the difficult task before us." 

"Since the National Flood Insurance Program began in the late 1960's and
took over the flood insurance program, they have worked hard to expedite the
assistance they offer to flood victims," said Mississippi Insurance
Commissioner George Dale. "Like many others in the aftermath of Katrina,
they are adapting to a situation none have encountered before. I applaud
their efforts to efficiently serve the Mississippi victims of Katrina. We
will be working with NFIP and other government agencies in an effort to find
relief for those not covered by an insurance company or NFIP." 

"Among the lessons our department learned from Hurricane Ivan was the need
to work closely with the National Flood Insurance Program," said Alabama
Insurance Commissioner Walter A. Bell. "I am appreciative of the aggressive
approach the program is taking in regards to claims from Katrina. As it
appears that the flood losses from Katrina will be quite large, it is
important that consumers have the process streamlined. We will continue to
work closely with the NFIP to best serve Alabamians affected by flood." 

Federally backed flood insurance is available for residents living in and
out of floodplains, through nearly 100 Write-Your-Own insurance companies in
more than 20,000 participating communities nationwide. Communities
participate in the National Flood Insurance Program by enforcing floodplain
development standards. More than 4.6 million Americans carry flood
insurance. People in every state are encouraged to visit www.floodsmart.gov
to learn more about their flooding risk and how to protect themselves. 

Source: FEMA 


Links
www.fema.gov/press/2005/katrinainsurance.shtm 
www.floodsmart.gov