Policyholders of America has stepped up to the plate for Katrina victims by securing housing for more than 1,000 displaced individuals and we’re still counting. Our real work, however, begins when homeowners return and are allowed to assess their property loss.

If history repeats itself, and it will, many insurance carriers (especially the big ones) will deny, lowball and delay insured losses, sleazy public adjusters will swoop down on the victims and make promises they have no intention of fulfilling and shoddy contractors will take full advantage of the newfound opportunity to rip-off victims.

BEFORE filing a claim, check your policy (ask the insurance company to fax you a copy if it was destroyed) and see if the damage is covered. Usually, rising water is NOT covered by the homeowner’s policy and such damage would only be covered if the homeowner purchased a separate flood policy. However, if the damage done was caused by heavy rain or wind, (i.e. roof damage) the homeowners policy alone typically covers such damage.

Early estimates peg the insured damage at around $40 billion. POA estimates that Katrina caused another $20 billion in UNINSURED losses. If no policy was in place (including a flood policy), you may be able to qualify for a FEMA grant or low interest loan. If a flood policy was in place at the time of the hurricane, you should immediately contact your insurer.

Emergency orders from the Dept. of Insurance will be forthcoming and will be posted in links below this article as they are announced.

A few things to remember:

1. Do not sign a contract with a public adjuster UNLESS:
   1. The public adjuster’s fee is reasonable and is not tied to a percentage of recovery. Ask the public adjuster to estimate his/her hours on the claim and calculate their hourly fee. While the public adjuster cannot be paid based on a percentage of claims settlement, their fee must be commensurate with the loss. Simply put, do not agree to pay a public adjuster $25,000 on a property loss of $100,000 (25%). Instead, the public adjuster’s fee should be no more than 10% of the property loss;
   2. The public adjuster must be registered with the Dept. of Insurance.
   3. The agreement between you and the public adjuster needs to spell out performance within a reasonable time frame. If certain time requirements are not met per the agreement, you should not owe the public adjuster money. The time frame should not exceed six months.
   4. Check with us BEFORE you consider a public adjuster. We can help steer you away from the scammers.
2. Only hire contractors who are local, and ask for and check references. Gypsy-like contractors usually pour into a disaster area and if YOU hire such a contractor who ends up ripping you off, your insurance company may NOT be responsible for their work. Never blindly trust a contractor sent out by your insurance company as their preferred vendors typically cut corners to save the insurance company money (which is how they become “preferred” vendors). If you and you alone select the contractor, put effort into getting your insurance company to willfully agree to your choice of contractor. If the carrier has a hand in the selection of the contractor, they then may be liable for any screw-ups.
3. Insurance companies will attempt to weasel out of their responsibilities. Put EVERYTHING in writing by using our claim for which can be accessed using this link: http://policyholdersofamerica.org/claims_form.pdf This form was instrumental in helping get Florida hurricane victims paid.
4. If your home is NOT a complete loss, make certain that you make reasonable TEMPORARY REPAIRS so that no further damage can be done. This may mean placing a tarp securely over your roof, placing plywood over broken windows, securing valuable items that can be salvaged, drying out building materials and personal property that can be salvaged, etc… Remember, ALL cellulose base building materials (sheetrock, wood, wood flooring, carpeting), electronics (TVs, VCRs, radios, game platforms, computers, etc….) and upholstered items that have been sitting in water MUST be replaced and nearly ALL policies guarantee such replacement. Per the policy, replacement is for items of “like kind and quality”. In other words, do not let your insurer replace a Rolex with a Timex.
5. Most policies cover additional living expenses (ALE), in addition to covering the dwelling and contents. ALE is defined as any living expense (housing, mileage, utilities, furniture rental, etc…) that are OVER AND ABOVE your household’s typical expense. Document all such expenses and submit WEEKLY invoices to your insurance company. In order that your credit not be negatively impacted, request that your carrier pay these expenses in advance.
6. If you find that you are underinsured by more than 20%, and you relied upon the advice and counsel of an insurance agent (or broker) to set policy limits, you need to argue that the carrier’s representative (your agent) should be held responsible for the difference because you simply followed that agent’s advice.
7. If your home or business is a complete loss, you will find your loss is much more than just financial. There are some things that you can do to minimize the emotional loss experienced by adults and children when their most cherished possessions are destroyed. While adult separation anxiety is terrible, such anxiety can have an extremely troubling impact on children and teens. Try to replace that stuffed animal that your child slept with every night, or the XBOX that your teenage son liked so much BEFORE you replace some of your clothing. Further, it is important to realize that such losses often tear a family apart. Pay particular attention to your spouse’s needs during this time.
8. Don’t be afraid to ask us questions. We are here to help and do so for free. Unlike many consumer advocacy groups, we only work for the benefit of the policyholder and have no allegiance to contractors, lawyers, or others who will attempt to benefit from your devastating loss.
9. Finally, for those who want to open their homes to victims, God bless your generosity. However, please try to practice commonsense when allowing total strangers into your home. As a general rule, it’s always best to have a person, religious, civic or other organization or employer in common with the displaced person or family. And, be certain to have an agreement with the displaced person or family about the length of time they will be staying in your home and what expenses (i.e. food) if any, for which the displaced person or family is responsible. While POA encourages offering homes to families in need, we do not want our members to do so at their own peril. POA will continue to match member family with member family as our members have been vetted. However, most of the victims in need are not POA members and have not been vetted.

Below you will find a good piece from www.hurricanehousing.org which is a project sponsored by the Democratic Party and MoveOn.org. They offer some sound advice about hosting a non-vetted displaced individual or family:

Questions to ask:

• Who are they bringing?
• How long do they hope to stay? What are their expectations from you?
• What is their background? Who are they?
• What do they think they might do when you can no longer house them?

Your generosity in offering your home is commendable. But we strongly urge you not to accept an arrangement that doesn’t feel right. If you connect with an evacuee and you think for whatever reason it’s not a good match, tell them so. If appropriate, you can encourage them to use our website or hotline to submit more requests.

POA tackles some important issues ranging from coverage and blame to predictions. Click here to read the POA Special Report.

For many reasons, Katrina was no ordinary hurricane and the insurance industry will play a leading role in the aftermath. Given its wide variety of causes of loss and that first-party property policies often have significant variation in their terms and conditions, it is difficult to describe a typical Katrina claim and what the insurance response may be.

However, one issue that will be prevalent in Katrina claims is the interplay between damage caused by wind and wind-driven rain versus flooding. In some cases, this will determine the extent to which damage is covered at all or shared between private insurance and the National Flood Insurance Program.

Linked is an article written by Randy Maniloff entitled "Unraveling Insurance Coverage for Hurricane Katrina: No Big Easy Task" The article provides some insight into how Katrina claims may be handled by examining decisions of courts, especially from Louisiana, that have addressed coverage for past hurricanes involving wind, rain and flood damage.

Click here to read article

CDC Warns Flood Victims About Mold and Possible Health Effects - After natural disasters such as hurricanes, tornadoes, and floods, excess moisture and standing water contribute to the growth of mold in homes and other buildings. When returning to a home that has been flooded, be aware that mold may be present and may be a health risk for your family. This article, published by the CDC, speaks to the possible health problems associated with mold exposure.

Click here to read article

Health Alert from the CDC

Infectious Disease and Dermatologic Conditions in Evacuees and Rescue Workers After Hurricane Katrina --- Multiple States, August--September, 2005

On August 29, 2005, Hurricane Katrina struck states along the Gulf Coast of the United States. In the days after the hurricane struck, approximately 750 evacuation centers were established in at least 18 states to accommodate more than 200,000 evacuees (1). State and local health departments, with assistance from CDC, initiated enhanced infectious disease surveillance and outbreak response activities, implemented by teams of public health and rescue workers, including military personnel. Outbreak monitoring included direct reporting of conditions of public health significance to public health agencies; daily contact between CDC and local public health officials; canvassing of reports from CDC, public health departments, and news media for potential infectious disease outbreaks; and investigation of reports of infectious disease with outbreak potential. This report summarizes infectious disease and dermatologic conditions reported during the first 3 weeks after the hurricane, before effective local surveillance was fully implemented. One outbreak of norovirus was reported among evacuees in Texas; no other outbreaks requiring unusual mobilization of public health resources were reported among evacuees or rescue workers.

Click here to read article

WATCH THE VIDEO

NRDC's Team in the Field

Legal questions about insurance (page 14) and more.

Do you need flood insurance? Click here

FEMA FLOOD MAPS SCREW HOMEOWNERS

NEW BANKRUPTCY LAWS SCREW VICTIMS

SAMPLE LETTER TO INSURER (looting, wind, rain damage with Flood Insurance)

SAMPLE LETTER: Looting, Wind, Rain Damage without Flood Insurance

CDC warning of mold after flood

HEALTH INSURANCE MUST CONTINUE

12 Tips to Get Your Claim Covered

CDC Update on Mold and Mildew in Flooded areas

Flood Exclusions in Windstorm Policies

Hurricane Claims and Value Policy Law

Mold Greatest Risk Not Chemical Runoff

LA. ATTORNEY GENERAL PROBES INSURANCE CHECK ISSUES

THE INSURANCE INDUSTRY’S TROUBLING RESPONSE TO HURRICANE KATRINA

Mississippi Class Action against State Farm.
A class action has been filed on behalf of State Farm policyholders whose Katrina claims have been denied based on the flood exclusion. Pay attention to pages 16 onward for the basis of this suit and how you can argue the same.

Click here to read article

 
FEMA Briefing: Meteorologist on Storm Strength
FEMA Briefing: Meteorologist on Levies
FEMA Briefing: Bush Speaks to Brown
FEMA Briefing: Bush Hears From State Officials
FEMA Briefing: Brown Hears From State Officials
FEMA Briefing: 'This is the Big One'
FEMA Briefing: Brown Speaks With Chertoff

Hurricane ruling (Mississippi) against Allstate's Motion for Summary Judgment. The old wind vs. rising water issue.

State Farm penalized in suit over tornado claims

Judge: Some Katrina insurance exclusions unenforceable