Katrina flood insurance claims--the 60 day drop dead date
Katrina flood victims face loss of their coverage if they do not submit a sworn proof of claim on their flood insurance policy within 60 days from the date of damage reports the Insurance Scrawl, even if an adjuster has not inspected the property.
To facilitate getting the word out, here's the Scrawl's post:
The federal government provides flood insurance protection principally through private insurance companies. These flood policies require that the insured file a sworn proof of loss within 60 days from the date of the damage. In the circumstances of Katrina, there has been a great desire to assist policyholders in obtaining their coverage benefits. But the prudent course is to assume that this 60 day deadline will be strictly enforced -- i.e., a failure to comply will result in a total forfeiture of coverage. Flood victims always are sympathetic plaintiffs, but the courts have not always been responsive.
For example, the Eleventh Circuit, in a decision issued three months before Katrina, held that a policyholder forfeited coverage by not submitting the proof of loss within 60 days, even though the insurance adjuster first came to the policyholder's property 90 days after the loss. Lucien v. US Security Ins. Co. (11th Cir. June 8, 2005).
Of course, individuals and businesses that suffered loss from Katrina may not be in a position to submit the full proof of loss -- but that is not a reason to tarry. Submit a partial proof of loss, noting that the entire amount of the loss is not yet determined. FEMA has a guide to submitting claims, and the insurers have set up a website that seeks to provide comprehensive contact information for flood insurers.
One must be careful that in submitting a claim for flood that one is not undermining a claim under a property or homeowners policy. Accordingly, it is advisable in submitting the proof of loss to the flood program to temporize by stating that "[Policyholder] submits this proof of loss to comply with the requirements of its flood-insurance policy, although it is uncertain at this time the extent to which the items claimed were caused by flood or caused by another hazard covered by other insurance policies."
For the moment, protective claims should be submitted to any possibly available insurance, flood, property, or homeowners
Thanks for the informative warnings Robert! I'd like to hear more about the variety of insurances a homeowner needs to have in order to be fully covered. My impression is that there are plenty of gaps that the average homeowner and some agents don't know about.
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