CFA - Consumer Federation of America
07/30/2024 | Press release | Distributed by Public on 07/30/2024 08:38
Tips to Help Consumers Get Fair Insurance Treatment After Hurricane Beryl
Washington, DC-Today the Consumer Federation of America (CFA), Texas Watch, and Texas Appleseed shared resources to help consumers get their wind and flood insurance claims paid promptly, fully, and fairly in the wake of Hurricane Beryl. Policyholders are entitled to receive their claims payments to the full extent of their insurance policies. State and federal officials must hold insurers to their obligations and make sure consumers are fairly treated.
Douglas Heller, CFA's Director of Insurance, emphasizes that individuals affected by Beryl should immediately begin receiving the benefits of their home and flood insurance. 'Policyholders pay premiums expecting prompt support to repair their homes and restore normality after such damage," he stated. "We hope insurance companies will be good partners in the recovery and rebuilding to come, but history tells us that policyholders and regulators must be vigilant to ensure fair treatment."
"Insurers have slashed coverage, jacked up rates, and kept them there while fighting efforts to create a national catastrophe reinsurance program," said Ware Wendell, Director of Texas Watch. "Texans can't afford more of the same. We need solutions from lawmakers to ensure policyholders are paying sustainable rates for policies that actually provide coverage. The broken system we have in this state is a product of aggressive lobbying by the insurance industry. We must restore balance and fairness for Texas families."
"Some Texans are already experiencing their second disaster in two months and hurricane season has just started," said Madison Sloan, Director of the Disaster Recovery & Fair Housing Project at Texas Appleseed. "Paying out insurance claims fully and quickly is critical to recovery for both families and consumers."
Many Beryl victims may be underinsured or even uninsured for flood or wind damage. One key concern will center around whether home insurers argue that damage was done by flooding rather than the storm itself. While private insurers or the Texas Windstorm Insurance Authority covers damage from the hurricane, flood damage is only covered if a resident maintains a separate flood insurance policy. Most flood policies are sold by the National Flood Insurance Program (NFIP), but only a small percentage of Americans actually purchase flood coverage. In 2022, State Farm paid a $100 million settlement related to allegations that it improperly denied Hurricane Katrina claims or shifted responsibility to the NFIP by arguing that damage stemmed from flooding instead of the hurricane.
The groups are calling on Texas Department of Insurance (TDI) to monitor the claims handling process of all insurers, and they urge residents to contact the TDI if they believe their insurer is improperly denying or reducing the value of a claim for any reason. Texas Watch maintains a list of important disaster and insurance resources at texaswatch.org/stormhelp.
CFA, Texas Watch, and Texas Appleseed recommend that insured property owners with damaged homes take the following steps:
- Contact your insurance company and report your claim as quickly as possible. Depending on what caused the damage to your home, your claim may be covered by homeowners insurance or flood insurance, or by both.
- Document the damage in photos and videos as thoroughly as possible, but only to the extent that it is safe to do so. Do not allow damaged items to be removed before they have been photo-documented.
- Keep a daily journal, noting every time you speak or interact with insurance company adjusters, repair professionals, and anyone else you are considering hiring. Note their name and the date and time of the contact.
- Maintain receipts for every cost you incur; this includes hotel and food costs if you evacuate, any alternative living arrangement costs if you cannot return to your home, and any costs for making initial repairs to your home to prevent further damage. This may be covered under your homeowners insurance policy or private flood insurance policy. Temporary living expenses are not covered under National Flood Insurance Program policies.
- Check references and license status before you agree to hire or assign any of your insurance benefits to any professional. Unfortunately, post-disaster scams are common. Local help is preferable but if not available, be careful and vet out-of-the-area pros before you sign on the dotted line.
- Contact your Insurance Department and the Federal Emergency Management Agency (FEMA, for flood insurance) if you run into problems.
800-578-4677
Help Line: 800-252-3439
1601 Congress Avenue, Austin, TX 78701
File a complaint: https://www.tdi.texas.gov/consumer/get-help-with-an-insurance-complaint.html
Federal Emergency Management Agency
1-800-427-4661
500 C St SW, Washington, DC 20024