STORM DAMAGE INSURANCE
BY ALAN PLAFKER, PRESIDENT & CEO
MEMBER BROKERAGE SERVICE LLC
A MELROSE CREDIT UNION SERVICE ORGANIZATION
Your homeowners policy and storm damage.
What’s covered?
Generally, how does my homeowners policy respond to storm damage to my property?
Your homeowners policy covers most losses that may occur to your dwelling and personal property. Commonly, losses resulting from theft, fire, wind, vehicles and vandalism are covered.
What if there is damage because of a storm?
A standard homeowners policy covers storm damage to the dwelling, its contents and other structures such as garages and fences up to the policy limit. Such damage also acts as a trigger for coverage of other consequential losses and expenses including removal of debris and loss of use.
What if my family and I cannot live in our home because of the damage?
When storm damages make it necessary to leave your home temporarily, your homeowners policy covers the additional costs necessary to maintain your normal standard of living for such things as meals, lodging, laundry, transportation, entertainment, etc. You will need to present receipts for all of your expenses to be reimbursed.
What clean up expenses can I expect to recover following a storm?
Your homeowners policy will cover costs for removal of debris when covered property is damaged. This includes the removal of trees that fall on covered structures, but this coverage for trees usually is limited to $1,000 for a single storm.
Am I covered for protecting my property from damage?
Your policy obligates you to protect your property from further damage following a loss as a condition to payment of your claim. You can expect your policy to pay for such expenses to board windows and make emergency repairs. Also, property removed from your home to protect it from an impending storm receives more comprehensive coverage than what is provided at your home. For a limited period of time it covers flood, earthquake and any direct damage to your dislocated property without exclusions. However, the expenses to remove the property from harm’s way is not a covered expense.
What damages are not covered by my homeowners policy?
Trees, shrubs and gardens damaged or destroyed by the storm are not covered. The spoilage of food due to an inoperative refrigerator or freezer resulting from an off-premise power outage is not covered by many policies unless the appliances are inoperative because the damage to power lines or other utility equipment occurred on your property; for example, lightning damage to your circuit box or a tree falling on power lines connected to your home. It is important to note that there is no coverage for any damage that is a direct result of flood, surface water or water that backs up through sewers or drains that is caused by an act of nature (a storm).
How can I find out what is covered in my specific circumstances?
The information provided here includes general guidelines for storm damage coverage. You should contact your agency for definite answers and further advice.
Questions homeowners may have about their property loss claim following a catastrophic event.
When a catastrophic event occurs you no doubt will feel overwhelmed by the loss and the confusion that follows. Advance preparation is your first prescription for getting through the experience. But, now that you have suffered a loss, you will benefit from the kind of information that proceeds from questions asked by others who have endured similar events.
What is the most important thing to do first?
Your safety always is the most important concern. Do not return to your property until authorities have signaled it is safe to do so. When you approach the property, look for unsafe conditions such as downed power lines, the smell of natural gas and unstable structural conditions. If it is safe to proceed, proactively shut off the utilities (electricity, natural gas, water, etc.) before inspecting the damage. Do not drink tap water without boiling it for five minutes first and until you know the water is safe to drink.
Should I take pictures of the damage?
Yes. Take a liberal amount of pictures from different angles before you make emergency repairs to protect the property from further damage. You may use a video/digital camera for this purpose as well.
My home is too damaged to reside in. What do I do?
Contact your relatives, friends and church affiliates to see if they may be able to accommodate you temporarily. You also may want to seek help from the Federal Emergency Management Agency, the Red Cross, the Salvation Army or any other disaster recovery service organization.
Your homeowners policy typically will pay your additional living expenses to reside at another location until repairs to your home can be completed. The typical homeowners policy covers events, such as fire, windstorm and tornado. Unfortunately, even if you have a flood insurance policy, your additional living expenses will not be paid when the damages are caused by flooding.
Keep this in mind when you make your living arrangements.
What can I expect the adjuster to do when he or she arrives?
The adjuster will “scope” the damage, an important part of the claim process. An attempt will be made to determine the cause of damage; for example, was the damage caused by wind, flood or both? Next, the adjuster will itemize the property that has been damaged. You will want to make sure that nothing is overlooked. The placement of values on the damaged property will not occur at this time. Appraisals, repair estimates and inventories will be obtained later to establish values.
Often the adjuster will offer an advance payment on a covered claim so that restoration may begin and living arrangements can be made. Be sure to keep detailed records on how this money is spent.
Should I hire my own adjuster to assist me with my claim?
Public adjusters are paid a fee based upon a percentage of the claim settlement, typically, between 10 and 15 percent (state laws may apply). Consequently, you will need to decide whether the adjuster’s services are worth the discounting of your claim settlement. Some of the services public adjusters provide are:
Your agency will help you with coverage issues and provide assistance in the claim process. If your property values are out of the ordinary or the sheer volume of inventory is burdensome to you, you may want the assistance of a public adjuster.
What if I do not agree with the property values upon which the insurance company is basing the loss amount?
It may just be a need for additional documentation. When you obtain the evidence that substantiates the property value go back to the adjuster and negotiate a better settlement.
If the adjuster is being obstinate and unfair you can request to talk to the supervising adjuster. Your agency will advocate on your behalf to the extent possible.
If you are unable to negotiate further with the adjuster there is an “Appraisal” provision in your policy that specifies a procedure for resolving differences in the valuation of property losses. You and the insurance company each will get an appraiser at your own expense. Then those two appraisers will choose an umpire (whose fee is shared). An agreement by any two of the three appraisers will establish the amount payable.
Any time you feel your insurance company is not treating you fairly you may file a complaint with the Insurance Department
More Frequently asked questions about Storm Damage:
Homeowner's loss of use after windstorm power outage
Q. If an insured homeowner loses power for a period of time, say two weeks, can he, she claim additional living expenses although no property on their premises was
damaged by the windstorm?
A. Unfortunately, there is no coverage under the ISO homeowners policy for additional living expenses unless damage has occurred on the property. In order to trigger coverage for loss of power, the damage to utilities or equipment delivering that power would need to occur on the “residence premises.”
Spoilage after a power outage
Q. If an insured homeowner loses power for a period of time can he, she file a claim for spoiled refrigerated items although no property on their premises was damaged by the windstorm?
A. Unfortunately, there is no coverage under the ISO homeowners policy for spoiled food unless damage has occurred on the property. In order to trigger coverage for food spoilage caused by loss of power the damage to utilities or equipment delivering that power must occur on the “residence premises.” The damage at the residence is not limited to windstorm; it could be damage from any covered peril. For example, if a fire or lightning strike terminates the power there would be coverage for food spoilage.
Some insurers may offer food spoilage coverage as an enhancement to their homeowners policy or by separate endorsement. This coverage will pay for the loss to refrigerated items up to a special limit, typically $500, when the cause of power loss occurs off the “residence premises.”
Fallen tree
Q. Because of weakness caused by termites, a tree fell from a neighbor's yard onto our insured's home. Should our insured make a liability claim against the neighbor, or should he present a property claim against his policy?
A. In order to recover from the neighbor, your insured must prove the neighbor was negligent in his maintenance of the tree. In order to prevent delays in repairing the damage, turn this in as a property claim, and let the insurer decide whether to subrogate.
Your Professional Insurance Agent…
We want you to know about the insurance you’re buying.
Alan Plafker is President of Member Brokerage Service LLC, a Melrose Credit Union Service Organization. He is a licensed Insurance Broker and serves as Vice President on the Board of Directors the PIANY (Professional Insurance Agents Association of NY), serves on the Board of CIBGNY (Council of Insurance Brokers of Greater NY), and was appointed to the New York Independent Livery Driver Benefit Fund Board of Directors. His Agency insures thousands of polices for TLC Insurance as well as many policies for all types of insurance. You can reach him in his Briarwood, Queens office at (718) 523-1300 ext. 1082, or visit the website at: www.MemberBrokerage.com