NFIP simplifies adjustment process for policyholders affected by Hurricane Katrina

Citation

(2006), "NFIP simplifies adjustment process for policyholders affected by Hurricane Katrina", Disaster Prevention and Management, Vol. 15 No. 3. https://doi.org/10.1108/dpm.2006.07315cab.005

NFIP simplifies adjustment process for policyholders affected by Hurricane Katrina

In recognition of the widespread devastation caused by Hurricane Katrina, the National Flood Insurance Program (NFIP) has modified the way it settles claims to expedite the response to those policyholders in storm-stricken areas. The NFIP is utilizing all available data on water depths, aerial imagery, and information from underwriting files to determine properties where it is readily apparent that flood damage covered by the policy will exceed the amount of insurance purchased. It will be possible to pay the policy limits through dialogue with the insured and without waiting for a site visit to adjust the loss. This process may be used when homes have been washed off their foundations, affected for long periods by standing water, or when only pilings or a slab remain.

The NFIP has waived the usual requirement that the policyholder must submit a proof-of-loss and instead, where the policyholder agrees, will rely on a report by the claims adjuster. The NFIP has urged insurance companies to provide advance checks of around $3,000 to policyholders who carry contents coverage. Flood insurance assistance is available from the Federal Emergency Management Agency at: www.fema.gov/press/2005/katrinainsurance.shtm and (800) 427-4661. Information about the NFIP can be found at: www.FloodSmart.gov/.