FOR IMMEDIATE RELEASE
June 9, 2008
Insurance Industry Responds to Storm Damage
High Winds, Tornadoes, Flash Floods Inflict Widespread Damage
INDIANAPOLIS – As damaging storms offer little relief for Central Indiana residents, the Insurance Institute of Indiana reminds consumers to check for damage and know their insurance policies.
Insurance companies have been actively assisting consumers with claims initiated by severe storms on May 30 and succeeded by periodic severe weather events during the week following.
"The storms affecting Indiana within the past week have resulted in a destructive combination of weather events," Insurance Institute President Steve Williams said. "There are several actions consumers can take to protect themselves and their property."
Floods are the most common natural disaster, causing about $1 billion in property damage annually - but is your property covered? While traditional homeowners policies cover losses due to typical storm damage, unfortunately, flood insurance is excluded under standard homeowners and renters policies.
Flood insurance, available through the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program, covers direct physical losses by flood and losses resulting from flood-related erosion caused by waves or currents of water that exceed anticipated cyclical levels and accompany a severe storm or flash flood, such as that experienced over the weekend. If you live in a flood-prone area, contact your insurance agent for information about obtaining flood insurance.
However, damage to a vehicle as a result of flood is quite different from homeowners and renters policies. If a policyholder has comprehensive coverage on their auto insurance, the insured’s vehicle is covered for a loss caused by flooding.
Sewer backups are also common with heavy rains, however damage from sewer backups is not included in standard homeowners policies. This type of insurance can be obtained by adding an insurance rider to add to your policy. Nevertheless, if the sewer backup is caused by a flood, defined as surface water, it would be necessary to have flood insurance for your home to cover the damage.
The Insurance Institute is urging Hoosiers affected by the storms to take several steps to make the recovery process move more smoothly.
1. Check for damage immediately. Even if there is no obvious damage to your home or automobile, give them a thorough inspection. A more severe loss can occur if damage is not seen early. For example, a damaged roof can lead to leaks and other problems in the coming months or years.
2. Contact your insurance company or agent right away if you find damage. The faster your claim is reported, the faster it will be resolved. Additionally, waiting to notify your insurer can make it more difficult to attribute damage to this particular storm.
3. Document your loss. Begin by separating damaged and not-damaged items. Make of list of all of the damaged items to provide to the claims representative. Take photos of your property and vehicle.
4. Pay for small repairs yourself. Turning in small claims to your insurance company could cost you more money down the road. If your deductible is $500, turning in a $600 claim could cause your insurance rates to go up when your contract is up for renewal. It is usually cheaper to pay the extra $100 for the repair, than to turn it in to insurance and pay higher premiums.
For more information about the National Flood Insurance Program visit www.floodsmart.gov or contact your insurance agent for details or to obtain flood insurance.
The Insurance Institute of Indiana is a non-profit trade association representing insurance companies in the state of Indiana. Its ultimate purpose is to create and maintain a business, legislative and public awareness climate in Indiana that promotes the continued success of the insurance segment in the free enterprise system. Visit us on the web at www.insuranceinstitute.org.
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