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Disaster Recovery Guides 03

Flood Insurance Guide

Use this Guide if:

You are a homeowner

You live in an area that regularly floods

You are a renter living in an area that
regularly floods
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Guide to Flood Insurance

Floods are more common than you may think, and if you only have
homeowners insurance you may not be protected. Most traditional
homeowner insurance does not cover damage from flood events. This
guide will help you learn more about what flood insurance covers, where to 98% of US counties have
buy it, and what to do after a storm.
experienced a flooding
event

20% of flood claims are

from property owners living
outside a high-risk flood
Flooding is one of the most zone
expensive forms of disaster
damage -- 1 inch of water
can cause up to $25,000 in
damage

Flood Insurance
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Flood Insurance Claim Timeline 3
START MOLD
& DAMAGE 5 RECEIVE
PAYMENT
CLEAN UP

MEET APPEALING
4 WITH YOUR 6 YOUR CLAIM
ADJUSTER

DO YOU HAVE
HOMEOWNER OR
NO
FLOOD INSURANCE
COVERAGE?

CALL YOUR
1 INSURANCE HOMEOWNER’S YES
FLOOD
INSURANCE
INSURANCE
AGENT & FEMA
STORM
SATISFIED WITH YOUR SETTLEMENT OFFER?

NO YES YES NO

0 BUY FLOOD 2 DOCUMENT

INSURANCE DAMAGE

YOU WILL WANT ACCEPT AND YOU CAN

YOU CAN USE YOUR NEGOTIATE, OR
TO REGISTER
NEGOTIATE FUNDS TO FILE AN APPEAL
WITH FEMA
RECOVER WITH FEMA

Flood Insurance
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Buy Flood Insurance Call your Insurance Agent &
FEMA

National Flood Insurance Program (NFIP) policies can be purchased through most
insurance carriers. Even though you purchase the policy from a local carrier, the NFIP is
a federally backed insurance program run by FEMA. NFIP covers flood related damages
not covered under traditional homeowners and renters insurance policies. Flood Start Your Claim
insurance policies help to protect homeowners and renters from having to cover the cost
of recovering from a flood on their own. Once it is safe to return to your home, you should contact your
insurance agent or company to report your loss.
There are two types of flood insurance policies - Building Property and Personal
Property. If you need help finding your insurance carrier you can call
1-800-427-4661.
Your insurance company will assign you an adjuster, and your
adjuster should call you to schedule an appointment within the
next 24-48 hours. Make sure your insurance company has a phone
Building Property Coverage number where you can be reached.
Covers flood related damage to your home and the systems used
to run your home, like HVAC and built-in appliances. Your policy
coverage will be based on the value of your home, with a maximum
coverage of $250,000. Policies cover the cost of replacing what
was damaged or damage related repair, up to your coverage limit.
FEMA Assistance
That means if your home is valued over $250,000 or if the damage After you contact your insurance agents, call FEMA to get
to your home is greater than $250,0000, a flood insurance policy registered for disaster assistance.
may not fully cover your property.
FEMA assistance may help with disaster related costs that your
insurance doesn’t cover, such as temporary housing, childcare,
clean-up items, vehicles and transportation, and in some cases
home repairs.
Personal Property Coverage
You generally have 60 days after a disaster to register for
Covers personal property like furniture, clothes and
assistance. The sooner you register the better.
electronics. Policies cover the value of your property, or
what your property is worth, at the time of the disaster. The FEMA assistance is limited, so it should not be your only source
maximum coverage offered is $100,000. of recovery support.
Renters can purchase personal property coverage to protect
themselves from flood related damage.

Get Reimbursed!
Your insurance company may require that all temporary housing
related expenses be reimbursed. Make sure you save all of your
receipts, and keep track of them.

Flood Insurance
Be careful what you spend your money on. Not all expenses are
eligible for reimbursement by your insurance company. Make sure
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you know which expenses are and are not eligible.

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Document Damage Start Mold & Damage Cleanup

Before you start cleaning up after the storm or start moving your damaged Water damage from flooding must be dealt with soon after a disaster, or it will cause
belongings to the trash, take as many pictures or videos as possible. Documenting mold, and can be challenging to eradicate. NFIP policyholders must follow the
your flood-related damage is a critical step in preparing for your insurance adjuster cleanup and mold prevention guidelines in their policy.
and ensuring an accurate settlement.
If You Hire a Professional
Throw away items that Look up licensed mold assessors and remediators on the
pose a health risk, such
Your damage documentation should include... Texas Department of Licensing and Regulation(TDLR)
as perishable food items, website. Make sure mold remediators are licensed are don’t
Pictures of damages and an accurate description of how the damage was caused by clothing, cushions, pillows have a lot of complaints on file.
flooding. Talk to your insurance agent about any bids your receive to
If you are a property owner, your damage documentation should include both the inside determine which costs will be covered.
and outside of the building. Examples include personal property, building damage, and You may need to call your lender if they are involved in the
standing floodwater levels. clean up process. They may need to ensure the specifics of
the bid and payment schedule meet their requirements.
When documenting items like washers & dryers, hot water heaters, kitchen appliances,
televisions, and computers, make sure you take a photograph of the make, model, and Clean Up Recommendations
serial number. Note the flood level, or how the flooding caused the current damage to
Make sure any work being done follows local or
the appliances.
federal recommendations for mold remediation.
For damage to the inside of a building, having samples of building materials like carpet,
If you have questions on local guidelines, contact your
wallpaper, and drapes along with their replacement costs will be helpful when you meet
local Long Term Disaster Recovery group, or your City
with your insurance adjuster.
or County Health or Building departments.
If you took steps to prevent your property from flooding, like buying sandbags or moving
If your electrical, water, or HVAC systems have been
your belongings into storage before the storm, have those receipts ready for your
damaged by flooding or a disaster it is recommended
adjuster. You may be eligible to be reimbursed for those expenses, up to $1,000.
that you contact a repair service instead of fixing it
yourself.
Consult Mold Cleanup Guide
Some recommended disaster clean up include:
Homeowner’s and Renter’s Guide to Mold Cleanup After
Disaster, CDC, EPA,FEMA HUD,& NIH
Mold Clean-Up After a Disaster: When to Use Bleach, CDC
Mold Remediation Guide, sbpusa.org
Tips to Prevent Post-Flooding Mold at Home: Clean It, Dry It or
Discard It, FEMA
Disaster Cleanup & Repair For Your Home, redcross.org

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Meet with Your Adjuster Tip:
Any time you are talking to your insurance company, agent, or other representative, make sure you
write down their name, the date and time of the call, and any important notes from the conversation.
This will help limit the number of surprises or mishaps along the way.

What to expect during your Adjuster’s visit...

CALL NOTES
When your adjuster arrives, they should show you
Their official identification
Their contact information (name, email, identification number)
The name of their adjusting firm, and telephone number.

Your adjuster should :

REPRESENTATIVE
Explain the NFIP flood claims process
Discuss your policy coverage and provide information about how you should
present your loss to your insurance company REFERENCE #
Ask for a current mailing address and phone number if you are displaced.
Discuss if you are eligible for Increased Cost of Compliance
Never ask you for money or collect your deductible amount or charge you a fee
for their services

Property Inspection
Your adjuster will inspect your property and all damage caused
by the disaster.
This may include taking measurements and taking photos.

Damage Documentation

You should also provide them with your damage documentation

and a list of damaged items.

Advance Payment

You may discuss if you are eligible for an advance payment,

which can be used to help you in the recovery process.
You may be eligible for up to $20,000.

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Meet with Your Adjuster

Talking to your Insurance Adjuster Meet with your Adjuster

A claims adjuster will be assigned to work with you, they can help you
Questions you should ask your agent...
document flood damage and submit an accurate estimate of your flood
What losses are covered under my policy? loss.
Is debris removal covered under my policy? If not, do you have any recommendations
for help with debris removal?
How long will it take for an insurance adjuster to come to my home? How to prepare for your Adjuster
How long will it take to get a final determination once I have filed your claim?
Have all of your damage documentation ready
What types of documentation do I need to provide?
Does my policy have additional living expenses coverage? Can that cover temporary Photos of all the damage
housing? List of your flood-caused damages
Copies of receipts
Contractor estimates
Model numbers for damaged appliances or building material
samples
Other documentation to help with the loss estimation process.

Gather your supporting documents

Copies of your insurance policies
Identification
Documentation of the covered items in your home
Individual insurance companies may have different requirements
for what supporting documentation needs to accompany the
Proof of Loss form. Talk to your agent about what documentation
about what is required

Flood Insurance
Inspector Review Damage after
Hurricane Harvey
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Photo Credit: FEMA

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Preparing an Estimate Supporting your Claim / Proof of Loss Form
After your adjuster’s visit, they will use their knowledge, their inspection, and In the event you and your insurance company do not agree on a portion
your documentation to prepare a detailed, room-by-room cost estimate of of your claim, you may need to submit a Proof of Loss form. The Proof
damage. Once you receive their estimate, it is important that you carefully of Loss form is your sworn statement of the amount you are claiming. It
review it and speak with the adjuster about any questions or concerns you have. includes a detailed estimate of what it would cost to replace or repair the
damage, and all necessary supporting documentation.

Work with Your Adjuster on the Estimate In most cases, the adjuster provides you with a suggested Proof of Loss -
Your adjuster may have omitted items or needed further support documentation or review. If you agree with the suggested amount, you will sign, swear to and submit
This is a good time to work with your adjuster. The estimate serves as a guide when it to your insurance company. It is your responsibility to make sure your
obtaining bids from licensed professional contractors for repair work. Proof of Loss is complete, accurate, and filed in a timely manner.

If necessary, your adjuster may return to your property.

Other things to keep in mind when submitting a Proof of Loss:

You DO NOT have to Accept the First Estimate of Loss
Send within 60 days
You can work with your adjuster, the insurance company and FEMA to reach a higher
dollar amount for covered losses that you do agree on. You must send your completed Proof of Loss, along with supporting documentation,
When you do not agree with the suggested amount, you can work through the following to your insurance company within 60 days of the date of loss.
levels until you agree on a new amount Contact your insurance agent or carrier to get the proper address for submitting your
First reach out to your adjuster, then your adjuster’s supervisor, and then your Proof of Loss.
insurance company’s claims department. Getting your general contractor involved in
this process may be helpful. Keep a Copy
If you still can’t reach an agreement on a covered loss amount, complete a Proof of Loss Keep a copy of the submitted Proof of Loss form, along with copies of the
for the total amount you are requesting and send it with your supporting documentation supporting documentation for your records.
to your insurance company.

It Is Not Your Claim

Get Important Deadlines
The Proof of Loss is not the claim, but is one document that supports your claim.
Ask your insurance company to provide you with any important deadlines you need to
meet, and keep copies of all documents pertaining to your flood claim.
Keep copies of everything you submit to your insurance company. This will help ensure
you receive a claim payment that reflects your flood loss, within your policy limits.

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Receive Payment Appealing Your Claim

In the event that after working with your adjuster and insurer, you are not able to
come to an agreement on the final claim determination, or you do not agree with
Once your claim has been submitted, you will receive a package from the NFIP. It
their reasons for denying all or part of your claim, you have a few options.
will contain a report prepared by your insurance adjuster, and a check made out to
you and/or your mortgage company. Carefully read the report, and make sure you
agree with the final claim determination before depositing the check. When you
deposit the check, you are agreeing to their claim determination, and you will not
be able to file an appeal.

If you filed a Proof of Loss with your insurance company, and they agree with you, the claim will be
settled. If they disagree, they will send you a check for the claim amount that is undisputed, along 1 Amended Proof of Loss
with a detailed letter explaining the reasons for their denial. If you do not agree you can continue to Send an amended Proof of Loss with more supporting documentation to the
provide proof to support your claim or appeal your claim. insurance examiner to see if they will alter their claim determination

It’s important to remember:

The insurance carrier, not the adjuster, has the authority to approve your claim.
2 Submit a formal appeal to FEMA
It is possible for your insurance carrier to deny parts of your claim you and your Your appeal must be sent within 60 days of receiving the denial letter, including
adjuster worked on together. all supporting documentation
You can appeal the final claim decision in whole or in part
Your claim payment is based on the value of your structure and contents, not the
cost of replacement. When submitting your appeal, you should
If you find additional damage after you file your claim, or repairs cost more than Provide the names of the individuals who previously handled your claim
estimated, contact your agent to file for additional payment. Copies of all relevant documentation
All claim payments will include the names of anyone with a legal claim to the Any additional information that may be helpful to your appeal
property.
Examples of documentation can be found in the NFIP Flood Insurance Claims
This may include the name of the company (or companies) or Handbook.
individuals holding your mortgage.

3
You must send the check to the mortgagee(s) for endorsement before
depositing the check. Each mortgage company handles claim payments File a lawsuit against your insurer
differently and you should contact your mortgage company as soon as You have one year of receiving the denial letter to file a lawsuit
possible to confirm their payment process.
Once you file a lawsuit you can no longer appeal your claim with FEMA or file
Your insurer will issue payment for personal property in the name of the an amended Proof of Loss with your insurer
policyholder unless you financed the personal property through a Small
Business Administration (SBA) loan or a financial institution.

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Additional Help...
Key Terms:
Flood: (NFIP definition): a general and temporary condition where 2 or more acres
Where can I find more information on Flood Insurance or where to buy it? of normally dry land, or 2 or more properties are inundated by overflow of inland or
tidal water, unusual and rapid accumulation or runoff of surface water, or mudflow.
Go to FloodSmart.com
Call your local insurance agent Peril: the cause of loss or damage; flooding is a peril that is excluded from
homeowner insurance coverage; NFIP policies are additional insurance specifically
How do I find more detailed information on submitting Flood Insurance for the peril of flooding
claims?
Proof of Loss: the form, and supporting documentation, that a policyholder signs
Consult the NFIP Flood Insurance Claims Handbook on FEMA.gov
and submits to the insurance company to obtain payment for covered losses
Visit sbpusa.org for more guidance

How do I find more information on Mold Clean Up after a Disaster? Appeal: To request a reversal or new decision be made on your behalf

Read the EPA Homeowner’s and Renter’s Guide to Mold Cleanup after Disasters
Visit tdlr.texas.go for a list of licensed mold assessors and remediators and guidance on
selecting a quality mold remediator
Read the Red Cross’ Disaster Cleanup and Repair for your Home at redcross.org

Where can I more information on financial assistance after a disaster

event?
Call Federal Emergency Management Agency or go to their website DisasterAssistance. Reference:
gov
1. Lone Star Legal Aid
Reach out to the Texas General Land Office for Texas specific assistance or go to recovery.
texas.gov 2. Disaster Recovery, SBPUSA.org
3. Floodsmart.com
4. Federal Emergency Management Agency
Post-Disaster Recovery Funding 5. Environmental Protection Agency
Homeowners Insurance 6. General Land Office of Texas
Homeowners who are insured will receive funds to repair or replace damaged property or
losses. The extent of coverage is based on the policy of the homeowner.

[NFIP] National Flood Insurance Program

A federal program that provides protection from flood damage for property owners, renters,
and businesses. Coverage is based on the value of the property insured.
About This Project:
[SBA] Small Business Administration buildingcommunityWORKSHOP has developed four disaster recovery guides to help support those
recovering from a disaster event. The content in this guide was developed with the support of Lone Star
Commonly referred to as SBA loans, these low-interest loans can be used by non-business
Legal Aid.
owners to repair or replace homes, personal property and more.
This Hurricane Harvey recovery project was funded in part by a grant from the American Red Cross.
[FEMA] Federal Emergency Management Agency
The government agency that commonly provides assistance immediately after a disaster. In
addition to disaster response, FEMA provides Individuals and Households Programs (IHP),

Flood Insurance
that provides financial help or direct services for housing and non-housing needs to those
who qualify. These funds have a modest individual maximum.
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Red Cross
Disaster Recovery Guides
01 Avoiding Contractor Fraud
02 Renter’s Rights After a Disaster
03 Flood Insurance Guide
04 Clearing Title After a Disaster