Title:Handling Insurance Author:Nayda I. Torres Date: 1992 Handling Insurance Nayda I. Torres NATIONAL FLOOD INSURANCE PROGRAMS Property losses due to flooding total over $1 billion each year. Unfortunately protection against loss due to floods is not covered under a homeowner's policy. To help property owners recover financially and to induce communities to take flood management measures the federal government began the National Flood Insurance Programs (NFIP). If your community is participating in the program, you can obtain flood protection at reasonable rates. To become eligible, a community must enter the emergency phase of the NFIP by adopting preliminary flood plan management measures. During this phase property owners are eligible to purchase limited amounts of flood insurance at federally- subsidized rates. In the second stage of the program the Federal Emergency Management Agency (FEMA) completes a detailed study and local officials enact an ordinance that requires all new or substantially-improved structures be built with recognition of the flood hazard. At this time property owners may purchase increased amounts of insurance based on actual flood risk from a licensed insurance agent. Points to remember if you have a National Flood Insurance Policy: 1. Often you may be reimbursed for preventive measures taken to reduce flood damage to an insured building. 2. Policy holders may also be reimbursed for the cost of removing insured contents from a building that has been declared by community officials to be in imminent danger of flooding. 3. NFI insures buildings and contents. This includes almost every type of walled and roofed building that is mostly above ground. 4. All direct losses by flood are covered in the policy. Flood is defined as "inundation of normally dry areas by overflow of inland or tidal waters or runoff surface waters or mudflows." 5. Also covered are losses resulting from land collapse caused by water activity exceeding established levels. 6. Property not insurable under this program are livestock, motor vehicles, land growing crops, shrubbery, roads, etc. To see if you are eligible for flood insurance, check with your community officials, local insurance agents or call the Federal Emergency Medical Agency, toll free 800-424-8872. For more information write: Federal Insurance Administration Federal Emergency Management Agency 1725 Eye Street, NW Washington, DC 20472 Or, call FEMA's servicing agent at 800-636-6620. STEPS IN MAKING AN INSURANCE CLAIM 1. Contact your insurance agent or company immediately and report the damage. Give your name, address, policy number, and the date and time of loss. 2. Take pictures of the damage, if possible, before beginning repairs. If you repair small items such as TV antennas, window coverings, or fences before the adjustor arrives, it may be difficult to prove the damage. Pictures can also be used as evidence for tax deductions. 3. Protect your property from further damage or theft. Patch roofs temporarily. Cover broken windows with boards or plastic. If household furnishings are exposed to weather, move them to a safe location for storage. Save receipts for what you spend and submit them to your insurance company for reimbursement. 4. Dry out water-damaged furnishings and clothing as soon as possible, to prevent fading and deterioration. You may wish to take some items to a reliable dry cleaner. 5. Keep accurate records: a. A list of cleaning and repair bills, including materials, cost of rental equipment and depreciation of purchase equipment. b. A list of any additional living expenses, you incur if your home is so severely damaged that you have to find other accommodations while repairs are being made, including motel and restaurant bills, home rental, or car rental. c. A list of all actual losses, including furniture, appliances, clothing, paintings, artifacts, foods and equipment, regardless of your intent to replace the objects. Photographs of ruined homes or objects are excellent evidence for later documentation. Try to document the value of each object lost. Bills of sale, canceled checks, charge account records and insurance evaluations are good evidence. If you have no such records, estimate the value, and give purchase place and date of purchase. Include this information with your list. 6. Contact a reputable firm to have your damage repaired. Beware of door-to-door salesmen. Sometimes undependable workers enter a damaged area, make cheap repairs, and leave before the residents discover that the repairs are inadequate. If your local contractor cannot do the work, ask him to recommend someone. 7. Don't be in a hurry to settle your claim. Although you may want to have your damage claim settled as quickly as possible, it is sometimes advisable to wait until all damage is discovered. Damages which have been overlooked in an early estimate may become apparent later. If you are dissatisfied with the settlement offer, talk things over with your agent and adjustor. Check your policy to see what settlement steps it outlines.