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Tag: insurance claim

  • This Florida woman’s nearly $100K flood insurance claim was denied after Tropical Storm Debby due to a major loophole

    This Florida woman’s nearly $100K flood insurance claim was denied after Tropical Storm Debby due to a major loophole

    This Florida woman’s nearly $100K flood insurance claim was denied after Tropical Storm Debby due to a major loophole

    When Tropical Storm Debby came through Pinellas County, Florida in early August, Danielle Jensen thought her home was protected with flood insurance from the National Flood Insurance Program (NFIP). After all, she did spend $8,600 on a policy administered directly by the Federal Emergency Management Agency (FEMA).

    But when insurance adjusters came through, they denied her claim outright, not due to any fault of her own. A “prior loss” report discovered that the previous owner filed a flood insurance claim, but did not complete the repairs with the claim payout. From the home’s condition to the serial numbers on the appliances, everything was the same from the previous insurance claim, leaving her family on the hook for close to $100,000 in damages.

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    “It’s worthless, unless we flood again after we’ve made all these repairs,” Jensen told Tampa Bay’s News Channel 8. “At which point we could use it because it’s all new materials.”

    A denial like this can happen to anyone living in one of the roughly 23,000 NFIP communities if homeowners aren’t aware of their property’s past.

    How the National Flood Insurance Program works

    The National Flood Insurance Program is offered to homeowners through more than 50 insurance companies and directly through FEMA with NFIP Direct. According to FEMA, anyone living in a “high-risk flood area” with a mortgage from a government-backed lender has to have flood insurance.

    The policy can cover both the home and the homeowner’s belongings. Building coverage includes things like the foundation and electrical and plumbing systems, while contents coverage can help homeowners recover personal items like clothes, electronics and furniture. Based on government data, more than $79 billion has been paid for nearly 1.9 million filed claims throughout the life of the program.

    Unfortunately, traditional homeowners and renter’s insurance will not cover flood damage, and if your home has received federal disaster assistance in the past, you are required to hold flood insurance for as long as you live at the property. That doesn’t guarantee that every situation will be covered — and in the case of Jensen, the actions of the past homeowner caused her flood claim to be denied.

    Under the current NFIP Claims Manual, a claim can be denied if there was a previous flood damage claim and no repairs were made with the policy’s payout.

    But as of October 1, 2024 sellers will be legally required to disclose any prior flood claims and payouts to homebuyers so they can avoid this trap.

    Read more: These 5 magic money moves will boost you up America’s net worth ladder in 2024 — and you can complete each step within minutes. Here’s how

    What can I do to protect my home from denied flood insurance claims?

    The problem for NFIP-participating communities up until now is that federal law hasn’t required disclosure of a previous flood insurance claim, or the outcomes thereof. Any disclosure of claims information without the consent of the claimant or current homeowner has been seen as a violation of the Privacy Act — meaning the owner hasn’t had to provide information about prior claims during the home sales process.

    Until Florida’s House Bill 1049 goes into effect, it’s a good idea to get a clear yes or no regarding past claims from the seller on the disclosure form before purchasing a home in a high-risk flood zone. Any knowledge gaps or unsure responses may be a red flag. You can also work with your real estate agent to get as much information as you can before closing, including requesting a full prior loss report from the seller.

    Congressional representatives in the state Kathy Castor and Gus Bilirakis also told News Channel 8’s Better Call Behnken that they’re working on larger solutions to protect flood victims and urge those who have had their claims denied to reach out for support. They plan to increase provider competition to reduce flood insurance rates and mandate more transparency to prevent what happened to Jensen from happening again.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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  • Everything you need to know about filing a car insurance claim

    Everything you need to know about filing a car insurance claim

    A depressed adolescent who was texting their best friend while driving ran a red light and collided with your vehicle. While you were away on vacation, someone broke into your flat and took a lot of your belongings. Your living room was inundated when your washing machine malfunctioned. However, that is the purpose of insurance, and having the appropriate policies in place shields you from financial collapse in the event of the unimaginable. Also, depending on the type of damage you’re dealing with, submitting an insurance claim could help lessen your financial burden.

    What Is Insurance Claim

    A formal request for reimbursement for repairs and other costs resulting from a policy event (such as a vehicle accident or a home burglary) that is covered by your insurance is made to your insurance company when you file an insurance claim. The insurance company will typically send an insurance adjuster to look into the incident after you’ve filed all the necessary documentation for the car insurance claim process to begin. You will subsequently get a payment for the amount of your losses in the mail if the claim is verified and accepted. The Insurance Information Institute estimates that one in every twenty homeowners who are insured makes a claim each year. Additionally, as more and more people drive, the number of auto insurance claims is growing as well. In 2017, almost 6% of all drivers with collision coverage made a claim. That means that if you haven’t filed a claim yet, you most likely will in the future!

    When to File It

    Should I file or not file? Maybe you never had to deal with insurance claims, but following an accident, that is the question we should pose. And it depends, is the response. Generally speaking, it’s not worth the bother to file a claim for a very modest payout, if you get one at all, if your damages are less than your deductible or only a few hundred beyond it. So bear in mind to look after some mistakes before buying a new car’s insurance. It’s also critical to keep in mind that your insurance provider may decide to increase your premiums if you file a claim. Yes, even in cases where the weather is beyond your control or the other motorist was at fault. In some cases, there’s even a potential they’ll cancel your policy. Suppose your car hits a tree by accident. Your collision policy has a $1,000 deductible, therefore the cost of fixing your automobile would be $1,200. For a $200 insurance reimbursement and increased insurance rates, is it worth going through the insurance claim process? Most likely not. If so, it would be wiser for you to use your emergency fund, which is intended for just that—to pay for the repairs. You ought to register a claim as soon as you begin to experience financial hardship. Here are three particular situations where you ought to give submitting a claim serious consideration:

    Injury

    Should an automobile collision occur and injuries occur to you, the other driver, or any passenger in either vehicle, you will automatically need to submit a claim.

    Who Is at Fault

    There is perhaps some misunderstanding over who is at fault for an incident. The insurance firms for both parties will then be left to resolve the matter.

    Big Damage

    You may be looking at thousands in damages if your car is totally devastated. Those are some very substantial expenses that you most likely won’t be able to pay. Making a claim makes sense, then.

    Since every case is unique, it’s crucial to speak with an agent from your insurance provider or an independent insurance broker to help you assess the benefits and drawbacks of submitting a claim.

    How to File It

    Let’s imagine that your car was just involved in a severe collision and that the front end is now smashed in like a shattered accordion. Thankfully, you’re not hurt, but it appears that your automobile will most likely be completely destroyed, so you’ll need to make an insurance claim.

    What precisely do you do? We appreciate you asking! The following are crucial actions you should take to submit an insurance claim.

    Call the Police

    Don’t just stand there if there has been serious damage, an accident has resulted in injuries, or a crime has been committed. Get assistance by dialing 911! A police record isn’t required to file an insurance claim, but having one doesn’t harm either.

    A police report will include details that will simplify the process of filing an insurance claim as well as a detailed account of what transpired at the crime scene or during the accident.

    Information

    It’s time to gather information from all persons involved in the collision and record as much information as you can from the scene. Consider it similar to a treasure hunt. Ensure that you receive the following: if at all feasible, include the other driver(s)’ name, address, phone number, and a picture of their driver’s license, policy numbers for insurance, all involved vehicles’ years, make, models, license plate numbers, and images of the mishap taken from many perspectives. Keep all doctor’s notes, hospital bills, and other records you receive for the treatment of your accident-related injuries if you’re harmed and need medical attention.

    How about claims from homeowners insurance? Make a list of the goods that were taken or destroyed during a break-in, or take pictures of the damage done to your house. Additionally, save your receipts as evidence of expenditure if you must stay at a hotel while your home is being repaired.

    Call Insurance Company

    After you and any other accident victims are safe, contact an insurance company representative to find out what more you’ll need to submit a claim. Your agent can provide you with the guidance you require because they are well-versed in the nuances of the claims procedure.

    The insurance company may dispatch an insurance adjuster to look into the accident and the damage after you make your claim. Consider an adjuster to be the insurance industry’s man who is saving your day. To determine the true cause of the incident, the insurance adjuster will review all available information during the investigation. The adjuster will recommend to the insurance company the amount of money it should pay for the loss after figuring out what caused the accident.

    Gadgets Magazine 11

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  • Why is auto insurance so expensive in Alberta? – MoneySense

    Why is auto insurance so expensive in Alberta? – MoneySense

    Alberta premiums have gone up specifically due to soaring legal fees and other costs associated with lawsuits following accidents, which is not the case in other provinces. That’s thanks to a culture of litigation in the province, which isn’t as present in the rest of Canada.

    Over the last 10 years, the average size of accident benefit claims increased by 147% in Alberta, compared with 53% or less in other provinces. Put plainly, claims are higher in Alberta than elsewhere in Canada, due to bodily injury claims and escalating legal costs in Alberta. 

    The province of Alberta has consistently had the highest claims frequency for third-party liability, accident benefits, comprehensive and collision coverages, says a report from consulting firm MNP commissioned by the IBC.

    Huge auto-insurance legal costs are to blame as well. These costs have gone up in the province by 38% since 2018 and account for about 20% of the premiums drivers pay for mandatory auto insurance coverage in Alberta. 

    “This is equivalent to nearly $200 for each policy annually,” the IBC has stated in a recent report.

    Another contributing factor, according to MNP, is the increasing cost and length of car repairs. A Toyota RAV4 bumper costs $4,144 to replace today, up 50% from $2,769 in 2017. Also, 24% of auto sales in Alberta are of trucks, which is higher than the national average of 18.1%.

    Supply chain issues have slowed down auto parts replacement, as any car owner who’s had to cool their heels for a part to arrive at their mechanic can attest to. This waiting has had a knock-on effect of making car rental lengths longer in Alberta as well. 

    TOYOTA RAV4 model year Cost of repair Total increase of repairs
    2017 17 parts total cost of repair: $2,769 n/a
    2022 39 parts total cost to repair: $4,144 50% increase from 2017 (newer vehicles have complex technology and more parts to repair)

    Source: IBC

    Helen Racanelli

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