Getting Paid for a Repeat FEMA Flood Loss Insurance Claim Is Going to be Tougher

Devastated by Hurricane Sandy after being hit by Irene? Filing a repeat FEMA flood loss insurance claim? Do your homework!

The process of filing a flood loss claim is explained in my article, “How to File a FEMA Flood Loss Insurance Claim.” Owners file the claim over the phone, providing their date of loss, flood insurance, property and contact information. The case is assigned a claim number, and an adjustment company. The adjuster sends a field agent, who scopes the damage, with input from the owners. In a few days, he prepares and estimated proof of loss (POL), with allowances for damages room by room, including cost of clean up, drying, and repairing.

There is however one major difference for insured people filing a repeat flood loss claim on the same property. Homeowners and businesses must demonstrate that any allowance they received from a prior flood loss claim was indeed spent doing the necessary repairs. This calls for meticulous documentation of the prior loss' expenses, while owners are struggling with current repairs while being displaced from their homes.

Photo copyright: Dalia

Let's assume that an owner did in fact make all necessary repairs. However, the owner lost the contractor's receipt in the second flood. The insurance adjuster would be less than sympathetic if the claim is not substantiated, solely because of the existance of a prior flood loss claim.

The owner would also not get the benefit of the doubt from the insurance adjuster if he made all necessary repairs, but the contractor did not break down every repair in as detailed a manner as the proof of loss from the insurance company. For example, if the insurance reimbursement was for a door, a frame and a threshold, but the invoice just shows the door installation, the other parts not being broken out, the homeowner may not get reimbursement from the insurance for the other parts

It could also take longer to process the claim, as the adjuster needs to investigate that all the repairs the previous claim paid for were indeed made, essentially meaning twice the paperwork for him as well.

So filing a repeat FEMA flood loss insurance claim? Gather all the Irene receipts and match them against the insurance proof of loss. Check off what was repaired, and add up what was not. Even if the latter items were badly damaged from Hurricane Sandy, FEMA will not pay for them again and you must budget for out of pocket repairs.