Insurance classification

[beezee28]

Can one of you, insurance adjuster, insurance agent help me. I need to know how do you all classified storm surge when hurricane Rita came through our area in Southeast Texas (Golden Triangle) area. Damage cause by water rising from the ground up due to constant rain, is it water damage or is it flood? Any insight is apperciate.

 

[Vlad D Impeller]

Re: Insurance classification

From your description, i would call it a flood

 

[TilliamWe]

Re: Insurance classification

sounds like a flood to me.<br />Is your damage confined to the water from on the ground coming in? Or did your roof tear off, and the rain fell in? Also, some policies have "backup of sewer/drain" coverage. <br />You really need to be asking your insurance agent or adjuster, and/or your state's department of Insurance.

 

[craze1cars]

Re: Insurance classification

We need more info but I can likely help as I am deeply entrenched in this industry...are we talking homeowners here? If yes, it's technically a groundwater flood. And most likely a denial from a letter of the law standpoint if you didn't pay extra for a flood insurance endorsement.<br /><br />HOWEVER...<br /><br />The government is forcing insurers in many of these hurricane areas to pay the claims based on "proximate cause" theories. Here's how that works...the damage may have been caused by floodwater, but if it's proven to be a "storm surge", by definition this is floodwater that was caused by high winds pushing the ocean waters inland. Therefore high winds were the proximate cause of the damage, NOT flood. And just about ALL homeowners policies cover wind damage, right?<br /><br />Then again, if the flood was caused by 12 inches of rainwater overflowing creeks/rivers into your home, that's a clear-cut floodwater exclusion denial.<br /><br />And as has been already mentioned, if this water came up through your drains due to overload of the city's storm sewer system OR through your sump pump which failed due to power outage or being overwhelmed, this is where your "backup of sewer" endorsement kicks in (assuming you purchased it.)<br /><br />Again, the government pushes REAL hard against insurers to pay these losses anyway during catastrophic events REGARDLESS of whether you purchased adequate coverage, and the government always wins those arguments. So even if YOU feel your insurer is correct in denying your claim based on technical policy language, the feds might just force your insurer to pay up regardless. BUT YOU GOTTA ASK. Don't just bend over and take their first "no" for an answer.<br /><br />So let us know more details about what you're up against and we might be able to give you some guidance. But whenever in doubt, file a formal complaint with your state's insurance commissioner and let them help you with the legwork. It's free, and far more powerful than any attorney.

 

[TilliamWe]

Re: Insurance classification

craze is exactly right. So to all the insurance company bashers, remember this, " the government pushes REAL hard against insurers to pay these losses anyway during catastrophic events REGARDLESS of whether you purchased adequate coverage, and the government always wins those arguments." Ain't America great. The government bails out those who don't pay for what they need. And in the end it costs us all extra in premiums, and we aren;t the ones with claims.

 

[Realgun]

Re: Insurance classification

Its called flood!<br />TilliamWe there should be a law some where that you cannot buy insurance in a flood area without the extra coverage. Everyone in NO knew they could be flooded. I think the levies around the city might have let them know this so why did they not have flood insurance?

 

[TilliamWe]

Re: Insurance classification

real, there doesn't need to be a law, bacause an insurance policy is a legally binding contract, that the state controls! But obviously, the state or federal government can just tell insurance companies, "the contract means what we want it to." Again, hard for anyone to feel sorry for an insurance company, but I hope they all keep it in mind when crying about their premiums!

 

[islandboat]

Re: Insurance classification

I do not really understand Beezee's question. Water damage is explained in the policy's exclusion section. Certain types of water damage is excluded from the standard coverage. One must buy the optional (government sponsored) flood coverage if you feel that your home could be damaged by a flood. <br />One question that I have is about the "2% hurricane deductable". If a homeowner has a deductable for a certain type of peril, such as a named hurricane, how can they not be reimbursed for damages caused by that peril? My hurricane deductable is 2% of the value of my home. The deductable is simple math. Many people lost everything in the hurricane and have been told that they are entitled to no reimbursement because the damage received was from water and not wind. What else is a hurricane if not wind and water? Many people were confused by the double talk in the insurance policy. Would the "hurricane deductable" clause not mean that you are covered from hurricane damage?<br />Realgun, the U.S.A.C.of E.set up the current flood plan maps. The mortage companies followed that plan when advising homebuyers as to the need for flood coverage. That is where the trouble lies. The flood plan along the Gulf Coast was extremely flawed and many homeowners were told that it was not needed. It hasn't been in the news yet but many people with little equity in their homes have found it more economically feasable to stop paying mortgages and let the banks have the remaining house slabs rather than continue paying for a house that is gone while also paying to rebuild the house at nearly the original cost. It will be 90 days before that will begin to appear as most notes have been postponed for 3 months.