Special Issue
August 2016


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Our monthly newsletter addresses consumer insurance topics as well as timely information on issues affecting senior citizens in Louisiana.

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To find out if Consumer Advocacy will be in your area or to request a speaker for your organization or group, call (225) 219-0619 or send an email to: consumeradvocacy@ldi.la.gov

Upcoming Events

Louisiana Automobile Theft and Insurance Fraud Prevention Authority Conference

Date: October 12, 2016
Time: 9:00 a.m.
Location: Crowne Plaza Baton Rouge Hotel
4728 Constitution Avenue,
Baton Rouge, LA

 

View Louisiana's Open Meetings Law on the legislative website by clicking here.

 

Navigating the Claims Process for Those with Flood Insurance

The Louisiana Department of Insurance offers the following guidance for recovery after the recent flooding. For more information please visit www.ldi.la.gov/floodrecovery.

  • Notify your insurer to start the claims process. Make sure you have the name of your insurance company, your policy number, and a telephone number and/or email address where you can be reached at all times. An adjuster should contact you within a few days of filing your claim. If you do not hear from an adjuster, you can contact your insurance agent or company again. (Please see article below for more on adjusters.)
  • Document the damage. Separate damaged from undamaged property. Your adjuster will need evidence of the damage to your home and possessions to prepare your repair estimate. Take photographs or record video of all of the damaged property, including discarded objects, structural damage, and standing floodwater levels. Make a list of damaged or lost items and include their date of purchase, value, and receipts, if possible. Have a list of damaged items ready, along with photos of damaged property. 
  • Complete a proof of loss to support your claim. Your adjuster will assist you in preparing a Proof of Loss (which is your sworn statement of the amount you are claiming including necessary supporting documentation) for your official claim for damages. A Proof of Loss can be many things, but must contain the specific details set forth in the Standard Flood Insurance Policy. 
  • You'll need to file your Proof of Loss with your insurance company within 60 days of the flood. This document substantiates the insurance claim and is required before the National Flood Insurance Program (NFIP) or insurance company can make payment. You'll receive your claim payment after you and the insurer agree on the amount of damages and the insurer has your complete, accurate, and signed Proof of Loss. If major catastrophic flooding occurs, it may take longer to process claims and make payments because of the sheer number of claims submitted.

 

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Tips for Working with Insurance Adjusters

Insurance adjusters, whether contractors or employees of companies, play a vital role in the claims process. That is never more evident than it is after a disaster. Many companies do not have enough people on staff to handle an unexpectedly large workload so they rely on contract adjusters to help them expedite the overwhelming number of claims they receive. 

Adjusters go into disaster areas as soon as they are permitted to do so by emergency officials.  The time this will take depends on the severity of the damage in the area.  If you have reported your loss to your company, they should be able to give you an estimate on the time the adjuster will arrive.  Remember, in a severe disaster, claims are prioritized by the severity of damage.

The adjuster will need to see the damage to evaluate your loss but generally you should make temporary repairs that will prevent further damage to your property.  You might want to postpone permanent repairs until the adjuster has inspected the property and you have reached an agreement with your insurance company on the repair costs. Check with your insurance producer or company for specific instructions.  When possible, before meeting with the claims adjuster, determine what it will cost to repair your property.  

If your property was damaged by windstorm and by flood, you will likely have separate adjusters.  If your homeowners and flood policies are written through the same company, it is possible your losses will be handled by the same adjuster.

Be present when the adjuster comes to inspect your property.  Make sure you have your insurance policy, your list of possessions, any “before and after” pictures you may have taken, and all of your receipts for materials used to make emergency repairs.  Also be prepared to provide the claims adjuster with records of any property improvements you made prior to the damage caused by the disaster.  All of this will make the adjuster’s work easier and will help settle your claim sooner.  It is also important that you and the adjuster come to an agreement on what needs to be repaired or replaced.

After inspecting your property, the adjuster will prepare a repair estimate.  Ask the adjuster for an itemized explanation of the claim settlement offer.  If the first settlement offer does not meet your expectations, do not accept it and be prepared to negotiate.  If you cannot reach an agreement, call your insurance company or contact the Department of Insurance at 1-800-259-5300.

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Things to Consider When Hiring a Contractor 

  • If damage to your home has left you in need of a contractor, be extra careful.  Most of the time, an insurance company does not recommend a contractor, so be wary of those who claim the insurance company sent them. Always ask to see something in writing.
  • Get bids from at least three different sources. Do not do business with a contractor who cannot show proof of insurance. If possible, go one step further and ask that the contractor’s insurance carrier mail a certificate of insurance coverage directly to you.  With all contractors, request the names and phone numbers of at least two references who have had similar work done by them in the last year. Follow through by calling each reference and discussing the contractor’s work in some detail.  
  • Only do business with a contractor who is bonded, which will offer you some protection if the job is not satisfactorily completed or supplies purchased to make your repairs are not paid for. Check the licensing of the contractor with the State Licensing Board for Contractors by calling (225) 765-2301, or visiting www.lslbc.louisiana.gov and clicking on “Find a Contractor.” You can also call your Better Business Bureau to learn if there have been any complaints filed against the contractor.
  • Be on the look out for out-of-state con artists who may have just breezed into town to take advantage of the local situation. Also be wary of contractors who demand payment in full before work is completed. 
  • If the contractor needs payment to buy supplies, accompany the contractor and pay the supplier directly.
  • Before any work is started, request a clearly worded, itemized contract. Review it with the contractor and make sure you understand and agree with its content before the contract is signed. 

       

  • House flood warning sign


    Frequently Asked Questions

    I don’t have flood insurance. What do I do?
    If you live inside of the federally declared disaster area, and were not required to have flood insurance, you may be eligible for funds from FEMA’s Individual and Households Program. This program may be able to provide money for temporary housing, medical expenses and other expenses. Visit www.disasterassistance.gov or call 1-800-621-3362 to find out if you qualify. If you were required to have flood insurance and did not have it, you may be eligible for an SBA loan.

    I evacuated and I’m not sure if my home flooded. Should I file a claim?

    Yes, go ahead and start the claims process. The first step is reporting the loss to your insurance agent or insurance carrier who will assign it to an adjuster. 

    My vehicle was caught in the flooding. Can I file a claim?

    Coverage would depend on the type of policy you have on the vehicle. If you have a Comprehensive coverage within your policy on your vehicle, you will more than likely be covered for damage due to flooding. However, if you have only Liability coverage or Liability/Collision coverage, it is highly probable that you will not be covered for any flood damage to your vehicle. You should check with your agent to find out what your policy covers and in what amounts. 

    I can’t get through to FEMA. Where can I get help?
    Visit a Disaster Recovery Center to talk to someone face to face. You can find the nearest location at www.FEMA.gov/DRCLocator.

    What is an SBA loan?
    Following a disaster, the U.S. Small Business Administration (SBA) provides low-interest loans to homeowners, renters, businesses and others to recover from underinsured or uninsured losses. The first step is to register with FEMA at www.fema.gov. You can get help from the SBA Customer Service Center at 1-800-659-2955. Even if you are approved for a loan, you do not need to take it out. If you are not approved, you may be eligible for FEMA grants. However, you may not receive these grants unless you first submit the SBA loan application.

    For Medicare Recipients with Questions: 
    If you are a Medicare recipient in a disaster area and have questions about using your benefits, please see our Frequently Asked Questions or contact the Louisiana Senior Health Insurance Information Program at 1-800-259-5300.

     

     

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Office of Consumer Advocacy
(225) 219-0619 or (800) 259-5300

P.O Box 94214
www.ldi.la.gov

Baton Rouge, LA 70804-9214
consumeradvocacy@ldi.la.gov