A RISING CONCERN
No, your homeowners policy won’t cover flood damage from Ida.
Was your home damaged by Hurricane Ida? Insurance experts say you should file claims as soon as possible — if you have coverage.
Ida hit Louisiana on Aug. 29 as a Category 4 hurricane, with sustained winds of up to 150 mph. Days later, remnants of the storm inundated parts of New Jersey, New York and other Northeastern states, causing flash floods that damaged homes and cars and killed more than 40 people.
Property owners are often surprised to learn that their homeowners policy does not cover damage from floodwaters. They must add special flood coverage, underwritten by the National Flood Insurance Program and sold through insurance companies or from a few private flood insurers.
The Consumer Federation of America estimated Sept. 1 that the federal flood program would handle as many as 100,000 claims from Ida, totaling more than $7 billion, and that was before the storm hit the Northeast.
J. Robert Hunter, the federation’s director of insurance, said the additional flooding in the Northeast would result in about $2 billion in insured damage — although actual damage is probably much higher because many structures lacked flood insurance.
The property data company CoreLogic estimated that total insured flood loss for both residential and commercial properties in the Northeast was $5 billion to $8 billion, with losses for uninsured properties about double that. Pennsylvania, New Jersey, New York, Connecticut and Massachusetts account for most of the losses.
David Maurstad, a senior executive of the federal flood insurance program, said Wednesday that about 17,000 claims had been submitted so far from Ida, although it was relatively early because some people in Louisiana were still getting access to their properties. Extensive power outages delayed the return to some areas.
Coastal Louisiana, with its history of hurricanes, has a relatively high proportion of properties carrying flood coverage, Maurstad said. And insurers that sell and administer flood policies for the federal government have indicated they have an “ample supply” of claims adjusters to inspect properties and assess damage, he said.
Changes have been made to the claims process in recent years to help make filing simpler and faster, he said. The flood program has eliminated some “cumbersome” forms of paperwork, he said, and can now advance up to $20,000 for repairs even before an adjuster inspects the property. (The advance is deducted from the final payout.) The program also has streamlined its appeals process for policyholders who disagree with their payout, he said.
Standard homeowner policies may offer some coverage for damage in basements if the policyholder purchased extra insurance, known as an endorsement or “rider,” for sump pump failure, said Christine O’Brien, president of the Insurance Council of New Jersey, a trade association. So it may be worth filing a claim and having an adjuster assess the damage.
But coverage depends on the details of your rider. An endorsement may cover damage from a failed sump pump that was overwhelmed by, say, a burst interior pipe — but not if the cause was a flood, said Ellen Melchionni, president of the New York Insurance Association.
“Every policy is different,” she said.
Homeowners who do not have flood coverage may be eligible for federal disaster grants, which may cover some of the damage, or low-interest loans.
Major insurers are increasingly offering remote inspections over video because of the pandemic. If you have a mobile phone or tablet and are comfortable doing so, a remote inspection may occur sooner than an in-person visit.
To help speed the claims process, consumer experts advise contacting your insurance agent and filing a claim as soon as possible, since insurers typically handle them on a first-come, firstserved basis. Write down your claim number or store it in your phone — wherever it is easily accessible. And start a log of contacts with your insurer, listing the date, time and a short summary of the conversation.
If it is safe to do so, take photographs or videos of the damage — but leave climbing on the roof to professionals, Hunter said. You can also submit images of your possessions taken before the storm to document your losses.
The Federal Emergency Management Agency, which oversees the flood insurance program, recommends throwing out flood-damaged items that pose a health threat, such as from the growth of mold, after you take photos. Keep samples of flood-damaged items like carpet and curtains to show the adjuster.
Retain receipts of any initial repairs as well as the cost of hotels and meals. While federal flood policies do not reimburse for temporary living costs, homeowners policies generally cover those expenses when they are the result of wind damage. In federally declared disaster areas, disaster assistance may help pay for living costs that flood insurance does not cover. You can search FEMA’s disaster website to see if your area qualifies.
Fortunately, standard homeowners insurance policies do typically cover damage from high winds — like blown-off roofs, shingles or siding, or blown-in rain. If your property was affected by both wind and flood, you may be eligible for living expenses from your policy, Hunter said.
Here are some questions and answers about flood insurance:
Q: What if I am not satisfied with my flood claim?
A: If you feel your payout is too low, you can dispute it. You can ask the adjuster’s supervisor to reconsider your claim, or you can file a request with the insurer for a new review. If you still disagree, you can file a written appeal with FEMA within 60 days of the insurer’s denial letter.
In cases of serious damage, you could consider hiring a public insurance adjuster — a professional adjuster who represents you rather than the insurer
.
Q: Do I need flood insurance if my home is not in a high-risk area?
A: Increasingly, it is wise to consider coverage even in areas that have not previously been prone to catastrophic flooding, experts say. “Flash flooding can occur on a stream that’s not mapped” on federal flood documents, Hunter said.