In the aftermath of Hurricane Ian, businesses and homeowners will look to secure insurance recovery for the significant property damage and business income losses left in its wake. Below are tips and resources to consider when seeking insurance coverage for losses resulting from Hurricane Ian.
Individuals impacted by Hurricane Ian will generally have claims relating to flooding of their homes and/or automobiles. Flooding from a hurricane can cause extensive damage and potentially leave a home completely uninhabitable. Unfortunately, only 20% of impacted homes may have flood coverage.
If a home is flooded, the entire floor of flooding must be cleared of impacted carpet/flooring, cabinets, drywall up several feet, appliances, and personal property. Construction to repair flooded homes is expected to take five to twelve months and individuals will need to obtain temporary housing for a prolonged period of time.
Individuals with flood insurance under the National Flood Insurance Program (NFIP) should file a claim through their insurer. NFIP policies are often managed by an individual’s regular home insurer. The form policy generally covers up to $250,000 to repair/replace real property and $100,000 to repair/replace personal property. Usually, an advance of $5,000 to $10,000 is available, if needed, and homeowners need to follow NFIP guidelines to avoid mold (which is not covered).
Individuals should obtain complete copies, including endorsements, of all homeowner and flood policies and file claims under both policies. FEMA information on filing a NFIP flood claim can assist in this process. A proof of loss is generally required within 60 days of date of loss.
Under the NFIP standard policy, certain types of real property and all personal property are covered only at “actual cash value” or depreciated value, rather than replacement value. This FEMA flood insurance guide provides a summary of the coverage available under the form NFIP policy.
NFIP insurance may also pay for the increased cost of compliance with codes up to $30,000. Generally, if more than 50% of the value of a home was damaged, there may be newer code requirements that must be met. Such codes may require raising the elevation of a home, demolishing it, or relocating to a new site.