The significant flooding from Hurricane Sandy is a leading cause of damage to many homes affected by the storm, according to the Insurance Information Institute.
Coverage for flood damage resulting from surface water, including storm surge caused by hurricanes is not covered under standard homeowners and renters insurance policies; however flood coverage is available both from the National Flood Insurance Program and from a few private insurance companies.
Anyone with flood insurance who needs to file a claim should contact insurance professional who sold the policy policy, who can outline the steps for to take. The insurance company may also set up an appointment with an adjuster retained by the NFIP.
Insureds should have the following information on hand when they call:
• The name of the insurance company (the agent may write policies for more than one insurance company)
• The policy number
• A telephone number and/or email address where you can be reached
• A mailing address (payments will be mailed to the policy holder’s last known mailing address, so be sure to provide an alternate address if the home address is not a viable option.)
Once the local authorities have confirmed it is safe to re-enter a home, take photographs of the house, as well as damaged personal property. Separate damaged from undamaged property and prepare a written inventory of damaged property including details such as quantity, value, a description and the amount of loss claimed.
Attach receipts, bills and photographs if possible. This will help to document the loss, as the adjuster will want to see evidence of the damage in order to prepare your estimate.
Local officials may require disposal of flood-damaged items for health and safety reasons. If this is the case, photograph the items before disposal and then again when they are outside for pick-up by sanitation crews.
Claimants may also want to keep swatches of carpeting, wallpaper, furniture upholstery, window treatments, as well as any other samples that may impact the amount payable.
A home inventory of personal possessions, if available, should supply the relevant information to the adjuster. This will help to substantiate the loss. The I.I.I. has free web-based software and apps to make creating a home inventory easier.
You can find out your approximate risk of flood and the cost of a flood insurance policy by going to the NFIP’s website: FloodSmart.gov. A flood insurance policy typically takes 30 days to go into effect.
The NFIP provides coverage for up to $250,000 for the structure of your home and $100,000 for contents. The NFIP policy provides replacement cost coverage for the structure of your home, but actual cash value coverage for contents, meaning that depreciation is deducted from the cost of the items. The NFIP policy also has limits on coverage for basements and their contents. Flood insurance is also available for renters.
Anyone needing additional insurance protection over and above the amount of coverage in a basic flood insurance policy, excess flood insurance is available from some private insurers. An excess flood insurance policy covers damage beyond the limits of the federal program—generally on the same basis (replacement cost for structure; actual cash value for contents).
Insurance is available to home and business owners nationwide, whether the property is in a high-risk flood area (known as a Special Flood Hazard Area or SFHA) or a moderate- to low-risk area, as long as the property is located within a community participating in the NFIP. More than 21,000 communities participate in the NFIP nationwide.
Flood insurance is required for those with a federally backed mortgage in a high-risk flood area. If a property is not in a high-risk area the risk is reduced, but not removed. Residents in moderate- to low-risk areas might be eligible for a lower-cost flood insurance policy known as a Preferred Risk Policy.
