Residential Flood Insurance (NFIP) Claims

The National Flood Insurance Program ("NFIP") was established in 1968 in response to the rising cost of flood premiums with the goal of "making flood insurance coverage available on reasonable terms and conditions to persons who have need for such protection". Homeowners can purchase standardized flood policies directly from the Federal Emergency Management Administration ("FEMA") which is tasked with running the program or through private insurance companies authorized to write such policies. Participating insurers issue standardized policies in their own names and collect premiums from which claims are paid.

While the NFIP can benefit homeowners at risk for flood loss, the program imposes significant time sensitive restrictions and filing requirements in which to pursue a claim after flood damage has occurred. Generally, a homeowner’s initial "Proof of Loss" and supporting documentation as well as any supplemental claims must be made within 60 days of loss, and the failure to do so is grounds for claim denial. This is a substantial burden for a homeowner who may be financially, physically and emotionally overwhelmed. Floods often cause the sudden loss of shelter, personal belongings, electricity, potable water and food not only to the homeowner but also to the surrounding community making assistance difficult. Furthermore, a homeowner’s supporting claim documentation may likely be destroyed in the flood making the claim process all the more difficult to successfully complete.

In addition, the NFIP imposes an "election of remedies" on insureds whose claims have been denied. That is, a homeowner must make a critical choice among several possibilities as to how to proceed with a denied claim, and that choice can substantially effect the claim’s outcome.

Bruce A. Tischler at the firm of Greene & Tischler, P.A. welcomes your questions regarding residential flood insurance claims.