Claims Handling Differences
between
Flood Insurance and Other Insurance

• NFIP flood claims are handled by adjusters certified by the NFIP -- The NFIP expects these adjusters to have had more experience with adjusting large claims, and special knowledge about the NFIP flood policy and claims.

• The field adjuster for a flood claim has no authority to settle a claim. By statute and policy language, the examiner at the carrier has sole authority on everything related to the claim -- this includes coverage, scope, pricing and payment. Field flood adjusters can not write checks, but they will forward requests for advances to the examiner.

• Flood claims can take longer to resolve, both because they tend to be large claims, and because of the review requirements of the NFIP.

• Damage from flood losses can take a long time to rebuild, particularly when there is a catastrophe which exhausts available labor and supplies for reconstruction.

• There is a unique claim appeal process for NFIP flood claims -- that process includes administrative appeals and special time limitations. If you have a claim, you should receive a claims guidebook from your adjuster.

All of the bullet points, above, apply. In addition:

• Under the NFIP flood policy, commercial claims for stock, inventory, and furniture/fixtures are reviewed and processed with very strict guidelines for documentation to substantiate ownership and value.

• You will be asked to document that the company exists, that a particular person has authority to handle the claim, that the company owns the property. You will also be asked to document all insurance policies held by your, your tenants or your landlord. Normally, your adjuster will start asking for this documentation at the beginning of the claim.