Nevada Commissioner Guides Fernley Residents through Insurance Maze in Wake of Flooding |
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Written by U.S. Insurance News
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Tuesday, 22 January 2008 |
Even if they're not sure if they have appropriate coverage, residents of Fernley, Nevada, are being urged to file a claim report with their insurance company in the aftermath of a recent levee break, which caused flooding in the area.
Nevada Insurance Commissioner Alice A. Molasky-Arman is championing the cause for Fernley residents. She has contacted insurers to remind them of their obligations and statutory responsibilities to their policyholders under an insurance contract.
"Insurance companies are required to fully inspect any damaged property before a coverage decision is made," Molasky-Arman said. "Additionally, insurers must provide their insureds with a reasonable and written explanation, which cites specific language in the policy to justify the reasons for denying a claim."
Molasky-Arman explained that flood insurance, which is not standard homeowners insurance, typically covers water damage due to flood. Exclusions in homeowner policies are not identical; they may vary among insurers or even the time of issuance of coverage. That's why the commissioner is reminding consumers to review their policy language for water damage exclusions due to flood. As the Nevada Division of Insurance points out, the question of whether certain flood exclusionary language in some homeowner insurance policies is sufficient to deny coverage-an issue that arose after Hurricane Katrina hit New Orleans in 2005-H--still remains in litigation.
In addition, Molasky-Arman is encouraging consumers to ask their agent to fully explain any exclusions related to flood and water damage. They should ask about determinations concerning related concurrent causes of loss, such as rain, wind, and weight of ice or snow, which may be covered by their policy even if other damage is excluded from coverage.
If they purchased automobile comprehensive insurance coverage, consumers also should know that damage to their vehicle caused by the weather, including flood, is covered.
Finally, in the event a claim that was originally denied is later accepted, Molasky-Arman is reminding homeowners that they will be required to reimburse the financial assistance or funding received from the Federal Emergency Management Agency (FEMA), not to exceed their claim settlement.
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