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.
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| 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.
While the debate about the fiscal cliff rages on, not many people are talking about the stealth tax increases in healthcare expenses. I have witnessed them since 2011, when under ObamaCare provisions, OTC medications started requiring a doctor's prescription for FSA reimbursement and a 20% penalty for the use of a health spending account to pay for non-qualified expenses was introduced. They are getting much worse in 2013.
