Welcome to the Post-Disaster Briefing for Insurance Agents. Sonja Wood Lisa Davis Wayne Berggren

Transcription

1 Welcome to the Post-Disaster Briefing for Insurance Agents Sonja Wood Lisa Davis Wayne Berggren

2 Purpose of this briefing Help insurance agents obtain current information since the August disasters Learn NFIP terminology and coverage Utilize NFIP Resources as a job aid for insurance agents Knowledgeable agents provide excellent Customer Service Purpose of this briefing 3

3 Flood Insurance is one of the best ways to protect homeowners and renters from financial impacts of flood events. 4

4 I. NFIP Overview Here s our AGENDA II. Special Disaster Considerations III. Common Coverage Issues IV. Resources V. Questions and Answers This briefing is one hour 5

5 Section I NFIP OVERVIEW 6

6 It is more than just numbers The number of claims 28,500 claims as of 09/06/16 Four parishes with approximately 45,000 PIFs East Baton Rouge Livingston St. Helena Tangipahoa NFIP Overview 7

7 Disaster Recovery Centers What is a Disaster Recovery Center? Property owners or renters can file on-line Apply or check status online, by telephone, or in person NFIP Overview 8

8 Disaster Recovery Center Locator ter/locator/home.htm NFIP Overview 9

9 WYO Flood Response Office Claims Staff NFIP Direct Guidance Define Scope of Coverage Assist with Reinspection Flood Response Office 201 Holiday Boulevard, Suite 303 Covington, LA Main: (985) Fax: (985) NFIP Overview 10

10 Flood Insurance vs. Disaster Assistance NFIP Overview 11

11 Disaster Insurance Requirements Flood Insurance Requirements for Recipients of Federal Disaster Assistance: Homeowner: Maintain flood insurance for the life of the building Renters Group Flood Insurance NFIP Overview 13

12 Section II SPECIAL DISASTER CONSIDERATIONS 14

13 Flood Insurance Claims Handbook Policyholder Claim Tips: 1. File the claim Flood Insurance Claims Handbook 2. Separate the damaged property from undamaged property 3. Create an inventory, take pictures and samples of damaged contents 4. List areas of structural damage 5. Complete and submit the Proof of Loss within days of the Louisiana loss Note: Mortgagee is listed on the claim payment Special Disaster Considerations 15

14 Flood Insurance Reform Act of 2004 Claims Handbook Policyholder Claim Tips: Summary of Coverage File the claim Separate the damaged property from undamaged property Make a list and take pictures of damaged contents List areas of structural damage Complete the Proof of Loss within 60 days of the loss Special Disaster Considerations 16

15 What you need to know for this disaster: Advance Payments Special Bulletins Debris Removal Extension of Grace period Adjusted Dates of Loss Update Extend the Time for Sending Proofs of Loss in the State of Louisiana Guidance for Condition of Brick Veneer in Louisiana Special Disaster Considerations 17

16 What you need to know for this disaster: Advance Payment $228,million in Advance Payments Benefit: Allows policyholder Expedited relief May be paid up to 50% of the estimated covered loss Advance payment is deducted from the overall total claim payment along with deductibles Advance payments is not a payment for Additional Living Expenses Advance Payments Special Disaster Considerations 18

17 What you need to know for this disaster: Debris Removal Debris Removal Health and/or Safety Substantiate the Loss Inventory Photographs Sample Special Disaster Considerations 19

18 What you need to know for this disaster: Extension of Grace Period Extension of Grace period Renewal of flood policies Grace period extended From: 30 days To: 120 days 20 parishes declared in Louisiana Special Disaster Considerations 20

19 What you need to know for this disaster: Adjusted Dates of Loss update Adjusted Dates of Loss Update New adjusted date of loss August 9, 2016 August 31, 2016 Special Disaster Considerations 21

20 What you need to know for this disaster: Proof of Loss Extend the Time for Sending Proofs of Loss in the State of Louisiana Increased from 60 days to 120 days Proof of Loss should be started right away Special Disaster Considerations 22

21 Guidance for Condition of Brick Veneer in Louisiana Brick Veneer Guidance Wood frame construction and brick veneer Adjuster will make a structural engineering assessment Special Disaster Considerations 23

22 Louisiana Disaster Mitigation Before you begin to repair or rebuild: Building Permits 1. Contact the local community official 2. Obtain a building permit 3. Ask if the building is substantially damaged 4. Ask the Claims Adjuster if the loss meets the requirements for the Increased Cost of Compliance coverage Special Disaster Considerations 24

23 Section III COMMON COVERAGE ISSUES 26

24 Why is it important to understand these risks? Coverage in low to moderate risk flood zones Zones B, C, and X What Options are available? Preferred Risk Policies FloodSmart.gov Common Coverage Issues 27

25 Summary of Coverage Definitions Limitations Deductibles General guidance on flood insurance Coverage Limitations in areas below the lowest elevated floor or in basements How flood damages are valued Special considerations for multiple claims What is the Increased Cost of Compliance coverage? Summary of Coverage Common Coverage Issues 28

26 What is Substantial Damage 50% of the building s predamaged market value Substantial Damage Elevate to newer and higher standards Increased Cost of Compliance coverage Common Coverage Issues 29

27 Coverage D: Increased Cost of Compliance Coverage D: Compliance & Eligibility SFIP pays for complying with state or local floodplain management law or ordinance Compliance activities include: Elevation, Relocation, Demolition, Floodproofing Eligibility requires: Substantial damage 50% of market value, or Lower local standard Repetitive loss 2 flood losses in 10 years 25% of market value ICC Limit of Liability $30,000 See Part III. Property Covered - Section D of SFIP for complete details on eligibility and coverage Common Coverage Issues 30

28 How much flood insurance coverage is available? Residential (1-4 family) Building Contents Other Residential Emergency Program $35,000 $10,000 Regular Program $250,000 $100,000 Building $100,000 $500,000 Contents $ 10,000 $100,000 Non-Residential Business/Other Non-Residential Building Contents $100,000 $100,000 $500,000 $500,000 Common Coverage Issues 31

29 Standard Flood Insurance Policy (SFIP) NFIP coverage forms Common Coverage Issues 32

30 Provides building and/or personal property coverage for: Dwelling Form Non-condominium 1-to-4 family dwellings Dwelling unit in a residential condominium building Residential townhouse/rowhouse Mobile Homes/Travel Trailers as dwellings Contents for renters Common Coverage Issues 33

31 Provides building and/or personal property coverage for: Non-condominium Residential Buildings with 5 or more units Apartment building Co-operative building Dormitory Assisted living facility General Property Form Non-residential Buildings Office building School, Church Factory, Warehouse Agricultural building Restaurant, etc. Common Coverage Issues 34

32 Provides building and, if purchased, contents coverage (commonly owned): Residential Condominium Building Association Policy Condominium buildings with 75% or more of total floor area for residential use Issued to a residential condominium association On behalf of association and unit owners Common Coverage Issues 35

33 Coverage A: Building Property Awnings, canopies Blinds Built-in dishwashers Built-in microwave ovens Carpet permanently installed over unfinished flooring Central air conditioners Elevator equipment Fire sprinkler systems Walk-in freezers Furnaces and radiators Garbage disposal units Hot water heaters, including solar water heaters Light fixtures Outdoor antennas & aerials fastened to buildings Permanently installed cupboards, bookcases, cabinets, paneling and wallpaper Plumbing fixtures Pumps and machinery for operating pumps Ranges, cooking stoves and ovens Refrigerators Wall mirrors (permanently installed.) Common Coverage Issues 36

34 Dwelling Form vs. GPP/RCBAP Quick Key: Detached garage is a building at the described location. Coverage B Personal Property Dwelling Form: If personal property coverage is purchased, the SFIP insures: Personal property inside a building At the described location General Property/RCBAP: If personal property coverage is purchased, the SFIP insures: Personal property inside Fully enclosed insured building Common Coverage Issues 37

35 Coverage B: Personal Property Dwelling Form Air conditioning units, portable or window type Carpets, not permanently installed, over unfinished flooring Carpets over finished flooring Clothes washers and dryers Cook-out grills Freezers, other than walk-in, and food in any freezer Portable microwave ovens and portable dishwashers General Property/RCBAP Quick Key: Quote contents whenever you quote building coverage or renters Air conditioning units Carpet, not permanently installed, over unfinished flooring Carpets over finished flooring Clothes washers and dryers Cook-out grills Freezers, other than walk-in, and food in any freezer Outdoor equipment and furniture stored inside the insured building Ovens and the like Portable microwave ovens and portable dishwashers Common Coverage Issues 38

36 What is a Basement? Coverage A & B Basements Basement is defined as: Any area of the building, including any sunken room or sunken portion of a room, having its floor below ground level (subgrade) on all sides. Common Coverage Issues 39

37 Coverage A: Basement/Enclosures Covered Building Property in Basements/Enclosures* Central air conditioners Cisterns & the water in them Unfinished drywall (walls, ceilings) in a basement Electrical junction and circuit breaker boxes Electrical outlets and switches Elevators and related equipment Fuel tanks and fuel in them Furnaces and hot water heaters Heat pumps Non-flammable insulation in a basement Pumps and tanks used in solar energy systems Stairways and staircases (attached to building) Sump pumps Water softeners and chemicals in them, water filters and faucets installed as integral part of plumbing system Well water tanks and pumps Required utility connections for items on this list Footings, foundations, posts, etc., required to support building Clean-up *Applies to basements in ANY zone and Post-FIRM enclosures in SFHAs listed. Please see the policy for complete details. Common Coverage Issues 40

38 Coverage B: Basement/Enclosures Covered Personal Property in Basements/Enclosures If policyholder has purchased personal property coverage: Portable or window air conditioning units Clothes washers and dryers Food freezers (other than walk-in) and food in any freezer If installed in their functioning locations and, if necessary for operation, connected to a power source. Common Coverage Issues 41

39 Property Not Covered Examples of Property Not Covered Quick Key: Vehicles licensed for public road use are not covered. Personal property not inside a building Building, and contents in it, located entirely in, on, or over water Open structures, including a boathouse in, on, or over water Recreational vehicles Self-propelled vehicles or machines licensed for public road use Land, land values, lawns, trees, shrubs, plants, growing crops or animals Accounts, bills, coins, currency, other valuable papers Underground structures and equipment, including wells, septic tanks, septic systems Walks, decks, driveways, etc. Containers & related equipment, such as tanks containing gases and liquid Buildings and their contents if > 49% of ACV is below ground Fences, retaining walls, seawalls, piers, docks, etc. Aircraft, watercraft or their furnishings and equipment Hot tubs and spas that are not bathroom fixtures Swimming pools and their equipment See Standard Flood Insurance Policy coverage forms for more information Common Coverage Issues 42

40 Exclusions Partial list of SFIP Exclusions Exclusions The SFIP does not provide coverage for: Loss of revenue or profits Loss of access Loss of use Loss from interruption of business or production Additional living expenses Common Coverage Issues 43

41 Exclusions Partial list of SFIP Exclusions Exclusions SFIP does not pay for losses for: Water or water borne material that: Backs up thru sewers or drains Discharges or overflows from a sump pump Seeps of leaks on or thru covered property Damage from the pressure or weight of water Exception: Unless there is a flood in the area and the flood is the proximate cause of one of the excluded items. Common Coverage Issues 44

42 Mold and Mildew Clean-up begins today Access to the building or contents? Mold and mildew must be resolved immediately Common Coverage Issues 45

43 Section IV FLOOD INSURANCE RESOURCES 46

44 What can you do to help? Assist with Claim Communications Be an Educated Professional Quote and Sell Flood Insurance Maintain Your Flood Policies Resources 47

45 NFIP Flood Insurance Manual Access the NFIP Flood Insurance Manual: Online at the Flood Insurance Library Resources 48

46 National Flood Insurance Program Home Page Resources 49

47 FloodSmart Online at: Resources 50

48 FloodSmart: Insurance Agent Site Online at: Resources 51

49 FEMA Map Service Center Locating flood maps: Resources 52

50 NFIP Training Want access to more NFIP learning? Sign up for NFIP Training Bulletins to be notified when new or updated flood insurance courses are available. Resources 53

51 All attendees will be receiving an with a link to a survey and feedback form. Evaluations Please take time to complete and help us improve our training effort! Evaluations 54

52 Section V QUESTIONS AND ANSWERS 55

53 Thank you for attending!