TIPS FOR DEALING WITH YOUR INSURANCE COMPANY
IN THE WAKE OF HURRICANE KATRINA:

• TAKE NOTES AND DOCUMENT EVERYTHING YOU CAN.

Try, at once, to make a list of your possessions.  If at all possible and as soon as you can, obtain a repair estimate from a trusted local contractor to use as a guide in talking with the insurance company’s adjuster.  Keep receipts from emergency repairs and any costs you incur in temporary housing. This may be reimbursable under the "loss of use" portion of your homeowners' policy.

Keep a journal of all of your contact with or attempts to contact your insurance company.  If they will not return your phone calls, fail to show at a scheduled appointment, or even if they are rude to you, write this down in a notebook.  Log every conversation that you have with them.  This could come in handy if you need to file a complaint or later need to talk to an attorney. 

• BE CAREFUL WHAT YOU SIGN

Under your homeowners’ policy, you are likely entitled to money up front for living expenses, such as hotel costs if your home is uninhabitable.  When it comes time for your insurance carrier to send you these funds, they may ask you to sign a document which says that these will be your final payment.  Do not sign if you think or know that you are entitled to more.

Also, before sending your temporary funds, they may also ask you to sign a document stating that all of the damage done to your home is flood related damage.  Do not sign this because some companies are attempting to avoid paying claims by stating that all of the damage has been caused by flooding, as opposed to wind or rain damage which is covered under your normal homeowners insurance.  The Attorney General of Mississippi has sued at least five insurance companies to stop this practice, including State Farm, Mississippi Farm Bureau, Allstate, USAA and Nationwide.

If your insurance carrier refuses to pay you for these expenses, declaring your damage to be entirely “flood” related, complain to the numbers below immediately, and call the AIR hotline so that we can keep of record: 888-450-5545.

• ASK FOR PROOF

If your insurance company tells you that your policy does not cover the damage that occurred or you feel that the offer is too low, ask for proof.  The burden is on them to point out the part of your policy that states what they are saying is correct.  If it turns out that the company has slipped in a new limitation in your policy that you don't know about, and believe you were misled, you may have grounds for legal action. 

For example, many companies have unilaterally imposed a separate “Hurricane Deductible,” which is usually a percentage of the value of your home.  Many people are not aware of this deductible, which has been introduced since Hurricane Andrew in 1992.  The disclosure to consumers of this new deductible has often been inadequate.

You gain two important things when they write to tell you this information: (1) later, they cannot come up with new reasons to deny your claim or make too low an offer, and (2) if the section of the policy they point out to you does not clearly say what they claim is a good reason to deny or cut your claim, you have a great chance to win in court. Any ambiguity will be held against the insurer and a court will tell a jury to accept your interpretation, so long as that is reasonable.

• IF YOUR HOME WAS DAMAGED BY THE HURRIANCE AND YOU HAVE A HOMEOWNERS POLICY BUT NOT FLOOD INSURANCE, DO NOT ACCEPT AN INSURANCE COMPANY’S DECISION THAT YOU GET NOTHING UNDER YOUR HOMEOWNERS POLICY

Right now, the insurance industry is trying to dodge its obligations to pay under homeowners policies, to the point of saying that even if hurricane wind contributed to the cause of the loss of a home (wind damage is covered by homeowners policies), they will not going to pay if the home was also flooded.  The federal government underwrites flood insurance and many people do not specifically have this.

Many houses were damaged by the combination of the hurricane itself and the hurricane-caused flood.  In many cases, the hurricane will have weakened a house so that the hurricane-caused flood did more damage than it would have done had the house not been weakened directly by the hurricane.  Moreover, when selling homeowners policies, many insurance companies and insurance agents fail to meaningfully disclose to consumers that homeowners insurance does not cover damages from flood.

In a lawsuit filed on September 15, 2005 against State Farm, Mississippi Farm Bureau, Allstate, USAA, Nationwide, and other yet to be named companies, the Attorney General of Mississippi, Jim Hood, is trying to force homeowners carriers to pay for some flood loss.

Consumers with homeowners policies but without flood insurance who are denied their claims should let AIR (888-450-55450) and the various state agencies know about this right away if you are denied coverage.

• COMPLAIN IF NECESSARY

If you are having problems with your insurance carrier such as telling you that they do not cover the damage, making a low offer or not being responsive or courteous - complain.  Ask to speak to the most senior staff member in the company. Complain to your state insurance department or Attorney General (see numbers below).  This is where taking good notes will come in handy.  And tell us about your complaint as well (888-450-55450).

INSURANCE COMPLAINT CONTACTS:

Louisiana Department of Insurance

General Information: 1-800-259-5300 or 1-800-259-5301

(Toll free inside Louisiana only)

Direct Telephone numbers: (225) 342-5900 or (225) 342-0895

Mississippi Department of Insurance

Main Switchboard: 601 359 3569

Statewide Toll Free: 800 562 2957 (Consumers Only)

Out of State: 1 866 856 1982

Mississippi Attorney General: 601-359-3680

Mississippi AG Insurance Integrity Enforcement Bureau

Toll Free Hotline: 888-528-5780

Telephone Direct: 601-359-4250

Alabama Department of Insurance

Phone: 334-269-3550

Fax:     334-241-4192

For floor insurance complaints, contact the Federal Emergency Management Agency, the government agency responsible for running the federal flood insurance program (1-888-CALL-FLOOD, TDD number: 800-427-5593.)  The FEMA flood insurance program tips on handling claims are located at www.fema.gov/nfip/tips.  

AIR Hotline: 888-450-5545