Claims News Service, Sept. 23, 4:05 p.m. EDT - In the wake ofHurricane Katrina, the National Flood Insurance Program ismodifying the way it settles claims to expedite the response tothose policyholders in storm-stricken areas.
|The NFIP is utilizing all available data on water depths, aerialimagery, and information from underwriting files, to determineproperties where it is readily apparent that flood damage coveredby the policy will exceed the amount of insurance purchased. Itwill be possible to pay the policy limits through dialogue with theinsured and without waiting for a site visit to adjust the loss.This process may be used when homes have been washed off theirfoundations, affected for long periods by standing water, or whenonly pilings or a slab remain.
|The NFIP is waiving the usual requirement that the policyholdermust submit a proof-of-loss and instead where the policyholderagrees, will rely on a report by the claim adjuster. The NFIP isurging insurance companies to provide advance checks of $3,000 topolicyholders who carry contents coverage. Adjusters have beeninstructed to assist policyholders in developing a list of theircontents and appliances damaged by flood waters. Serial and modelnumbers are not needed, and a list of contents by major groupingmay be submitted, rather than a comprehensive list.
|More information is available at http://www.fema.gov/nfip.
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