Water and Wind

  

In every hurricane there is always an argument over whether water or wind caused the loss. When I talk about water, I am talking about flood and not water that comes through a damaged roof or window. In the case of flood water, if you didn’t purchase a flood policy, you won’t have coverage under your homeowner’s policy. So the argument of water verses wind has financial consequences. Even if you have flood coverage it may have financial consequences if there is not enough flood coverage to pay for your loss.

As a general strategy, work to get as much damage covered under the policy with the greatest limits. And don’t concede to flood property that was first damaged by wind and subsequently damaged by flood. 

After Hurricane Katrina a famous attorney tried to convince the Mississippi court that flood was an ambiguous tem in the homeowner’s policy. That court didn’t buy his argument.  Chances are good that the court of the land will not buy a similar argument in your area either. So if you have both flood damage and wind damage, but don’t have flood insurance, look to identify all the signs of wind damage and assert that as a part of your claim against the wind policy. Not sure how to do that?

Go to BenefitBill. I’ve just posted a new video and workbook on this very subject.

Water's Receeding

Every hurricane is different and Isaac is no exception. Although a minimal storm, Isaac’ storm surge still over topped levies in Louisiana and caused wide spread flooding in areas where the levies were not over topped. Also, tornadoes and straight line winds caused some significant structural damage, but overall Isaac will be remembered as a flood event and not a wind event. 

Flood presents its own challenges though. First, flood damage is not covered by homeowners policies and it doesn’t matter whether the flooding arose from water driven by wind or simply an accumulation of rain. If you have a flood policy, you needn’t worry because you’re covered: right? Well yes and no. Yes you are covered, but coverage can be very restrictive, particularly for damages that are below the base flood elevation (BFE). Also, decks, fencing, other structures also have coverage limitations. Now is the time to break out your flood policy and read it. Don’t have a copy? Go to http://www.fema.gov/national-flood-insurance-program and download the latest copy of the Flood Insurance Manual.

Pay particular attention to the time limit in which to file a proof of loss. The standard time frame is 60 days, but for catastrophes it is usually extended by the NFIP. Your flood adjuster does not have the authority to extend the time limit for the filing of a proof of loss so make sure you get one in on or before the time limit.

Bill

Taking a Pounding

New Orleans and surrounding areas continue to take a pounding from Hurricane Isaac. While the winds from Isaac are not going to cause catastrophic damage, the cumulative effect of winds over hours is going to result in some damage. What is likely going to be the significance of Isaac is the water. This is a slow moving storm and is dumping lots of rain over a widespread area. It is inevitable that the water will begin to accumulate.  If you are hunkering down and observe water accumulating around your home, take whatever steps you can to protect your property and if water is beginning to enter your property, turn off the power.  

If you are able to safely do so, photographically document the water both inside and outside your home. When the water subsides take a tape measure and photographically document the flood line both inside and outside your home. Take whatever steps you need to protect and preserve your property bearing in mind that if you are going to make an insurance claim, the insurance adjuster needs to have the opportunity to inspect the damages. Remember flood is not covered under your homeowner’s policy; you must have a flood policy. However, if you don’t have a flood policy you may be entitled to a tax write off for the damage. Check with your accountant for the rules on this.

Regardless of whether you are making an insurance claim or planning on taking a tax write off, be sure to photographically document the damage to your property. If you’re making an insurance claim don’t throw anything away until the adjuster has seen it and concurs that it should be thrown away.

Good luck on your loss and if I can answer any questions for you, please do not hesitate to ask.

Bill

Flood and Water

It looks like South Florida has dodged the hurricane bullet again. While I am out of town for this event and missed it altogether, I understand from friends it was not that bad…. a lot of rain, but not much wind.  Rain however can cause significant damage. This is particularly true if it results in widespread flooding. Many homeowners are surprised to find that flood is not covered by their insurance policy. That’s true. You need to purchase flood insurance before flood is covered.  If you have flood insurance you should be in good shape.

However, tropical systems can down trees and deluges that accompany them can also pour in through leaky roofs or through broken windows causing substantial damage. If this has happened to you, when you report your claim to the insurance company, don’t tell them your house is flooded. Flood in an insurance policy has a specific meaning (a general inundation of a normally dry area over an area of 2 or more acres). If you tell the insurance company your house is flooded from the storm, they may mistakenly presume you mean flood when you really mean damaged by water from a leaky roof or broken window.  In so misconstruing your report they may deny your claim without even bothering to inspect the damage. 

Many areas have experienced power outages. Regardless of whether your home is damaged by flood or water pouring through a hole in your roof, you should be aware of electricity. When the power is restored, there is always the danger of electrocution. So be safe in Isaac and be careful of electrical lines in and outside your home.

Remember, you can find information on how to make an insurance claim at www.BenefitBill.com

Bill

Hurricane Dolly

Every hurricane as a similar issue: wind vs. wave. How this issue plays is determined by how much money is at stake and successful the industry believes it will be in transferring exposure from the casualty policy to the flood policy. Hurricane Katrina is the classic example. Immediately following Katrina, the industry began floating positions about the large extent of flooding associated with this storm. The mantra was flood, Flood, FLOOD and FLOOD. No amount of evidence to the contrary dissuaded them from their position. The industry hired a cadre of experts to support their position and began denying (rather successfully I might add) claims that might otherwise have been paid. Why do I say this?

Most people mistakenly believe that property insurance policies insure property. Truth is they don’t. They insure people. The property is simply the subject of that insurance. This affords the insurance company the freedom to decide which risks it wants to indemnify the policyholder against and which it does not. Guess what? Flood or should I say FLOOD is one of those risks it does not wish to insure against.

In Katrina a lot of properties were damaged by flood. A lot of those same properties were also damaged by wind. This of course raises yet another issue: chicken and egg. If flooding preceded the wind the insurance company has a very strong argument to limit the loss other wise payable. If wind is first on the scene if becomes increasingly difficult to attribute damage to flood.

The weather channel tonight stated there was a significant number of damaged roofs and broken windows. They also mentioned flooding. No comparisons were made with Katrina.

Now consider this: lets say hypothetically that Hurricane Dolly damages a roof and breaks a window or two or three. Water enters the house through the damaged roof and broken windows: a lot of water. Imagine a fire hose pointing at your house in a hundred mile per hour wind. How much water to you think would enter a broken window.

That water is going to saturate the property in short order. Much if not all of the interior finishes, fixtures and personal property are going to be significantly damaged if not considered a total loss. Now flooding occurs. My question is this: how has the flooding caused any more damage?

It hasn’t. The proximate cause of the damage is wind and the insurance company not Federal Flood should be paying the loss.

If your home was damaged by Dolly, take good photographs. Pay particular attention to broken windows and damaged roofs. Inside your home document any damage that appears to originate above the water line. Be sure to document the water line as well. Use a tape measure to capture the exact height of the water. Remember the burden is on the policyholder to prove their loss. If you have questions email be at bill@sasclaim.com I’ll do my best to help you out. Good luck!