WASHINGTON, D.C. — Today the Consumer Federation of America (CFA) and United Policyholders (UP) shared tips and resources to help consumers get their wind and flood insurance claims paid quickly, fully, and fairly in the wake of Hurricane Isaias. Initial estimates indicate that the storm resulted in about $1 to 2 billion in insured losses, primarily related to wind damage.

Insurance companies are legally obligated to fairly investigate and value damage and pay claims promptly and in full. Policy fine print, limits and deductibles are confusing to the average consumer, but the law requires insurance companies to meet the reasonable expectations of the policyholders who have paid premiums in return for protection. 

According to hurricane claim reporting data and documents that are surfacing in lawsuits across the country, insurers are increasingly closing claims without making any payments and using biased experts to justify those denials. Consumer advocates are urging state insurance commissioners to carefully scrutinize insurance companies’ hurricane claim handling and take necessary actions to reverse these trends. Hurricanes bring damaging winds, not just flooding, so when insurers deny claims on the basis that excluded flooding was the cause, it’s critical that regulators examine those files to make sure there was a balanced investigation into the cause.  

“In the aftermath of Hurricane Isaias, it is essential that insurance companies make timely and full claim payments and that regulators are there to make sure companies don’t make policyholders fight for their fair claim,” said Douglas Heller, CFA’s Director of Insurance. “People pay thousands of dollars a year for coverage they hope never to need, but when disaster strikes, they count on these companies to come through. Too often, though, they come up short.”

“If your home or business has been damaged or destroyed, take photos of the damage, get complete copies of your home, auto, and flood policies, keep a record of all conservations with insurance company representatives and repair professionals and be pro-active in getting independent assessments of damage and what it’s going to cost to restore their properties,” said Amy Bach, Executive Director of United Policyholders. “If you are being treated unfairly, speak up! You have rights and help is available.”

United Policyholders offers free guidance, tools and resources for hurricane-impacted insurance consumers at www.uphelp.org.  

Insured consumers with damaged homes or businesses should take the following steps: 

1. 1. Contact your insurance company and report your claim as quickly as possible. Depending on what caused the damage to your home, your claim may be covered by homeowners insurance, flood insurance, or both. 
   2. Document the damage in photos and videos as thoroughly as possible, but only to the extent it is safe to do so. Try to keep damaged items or possessions from being removed before they have been photo documented.
   3. Keep a daily journal and note every time you talk or interact with insurance company adjusters, repair professionals, and anyone else you are considering hiring. Note the name, date, and time of the contact.
   4. Keep receipts for every cost you incur. This includes hotel and food costs if you have to evacuate, any alternative living arrangements if you cannot return to your home, and any costs for making initial reports to your home to prevent further damage. This may be covered under your homeowners insurance policy or your private flood insurance policy. Temporary living expenses are not covered under National Flood Insurance Program policies. 
   5. Check a professional’s references and license status before you agree to hire or assign of your insurance benefits to them. Unfortunately, post-disaster scams are quite common. Local help is preferable but if it is not available, be careful and vet out-of-the-area profs before you sign anything. 
   6. If you run into problems, contact your State Insurance Department and the Federal Emergency Management Agency (FEMA, for flood insurance).

Florida Office of Insurance Regulation 
850-413-3140
Consumer.Services@Myfloridacfo.com
File a complaint: https://assistcon.myfloridacfo.gov/en-US/ 

Alabama Department of Insurance
334-269-3550
ConsumerServices@insurance.alabama.gov 
File a complaint: https://aldoi.gov/consumers/filecomplaint.aspx 

Mississippi Department of Insurance 
601-359-3569
consumer@mid.ms.gov 
File a complaint: https://www.mid.ms.gov/mississippi-insurance-department/consumers/file-a-complaint/ 

For more information, contact:

Michael DeLong
Research and Advocacy Associate at the Consumer Federation of America
mdelong@consumerfed.org 
925-708-1135

Amy Bach
Executive Director of United Policyholders
Amy.bach@uphelp.org
415-713-3048