Who do insurance adjusters work for? The one who came to my house after the hurricane said he doesn't actually work for my insurance company. How does that work?
There are three kinds of adjusters operating in this state in the aftermath of Katrina and Rita. They are: insurance company adjusters, independent adjusters who contract with insurance companies and public adjusters who offer their services, for a fee, to policyholders and others who want help with getting their claims paid by the insurance company.
The adjuster you worked with was no doubt a contractor who was working for an insurance company, which made that person a legitimate company representative. For future reference, remember that anyone who is representating a company should be able to show an ID. If you have any concerns about an adjuster or any other insurance company representative, always contact the insurance company for verification.
In Louisiana, we do not license adjusters, but the company the adjuster is working is responsible for that adjuster at all times, just as it is responsible for all the other employees and contractors who conduct business for that company in this state.
Because public adjusters are not employed by anyone the Department regulates, we are requiring that they register with us, whether they live here or have just come into the state to help with the storm damage claims.
Through the registration process, we gather the vital contact information we need if some question about a claim comes up after the fact.
To return to your question, 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 such a large workload and rely on contractor to help them expedite the overwhelming number of claims they receive.
If you have a problem with an adjuster or anyone else in the insurance industry, contact the appropriate insurance company or call us for further information.
While evacuating for Hurricane Katrina, I got sick and had to go to a hospital in Shreveport. Is it true that I don't have to pay extra for going outside of my health plan's network?
No, you should not have to pay extra if you live in Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany, Tangipahoa, Washington, Lafourche, Livingston, St. Charles, St. James, St. John the Baptist, St. Mary or Terrebonne.
Governor Blanco has given me the authority, as Insurance Commissioner, to implement certain emergency insurance rules. Under Emergency Rule 17, citizens with health insurance coverage in the above-listed parishes may receive medical care out-of-network and prescription medications out-of-network without penalty. In other words, you should not have to pay extra for the treatment or for the prescription drugs for some time, which could be a matter of months.
If you have a health care plan that requires you to call a toll-free number for permission before entering a hospital or undergoing certain medical procedures, you should still call that number if you have it with you and are able to do so.
For more imformation on Emergency Rule 17, please visit our Web site, www.ldi.state.la.us, and click on Hurricanes Katrina and Rita. If you have any other questions please call the Department of Insurance at our toll-free number, 1-800-259-5300.
After Hurricane Katrina, I heard someone bragging about filing a claim when they didn't have any damage. I know fraud is bad, but is there anything I can do about it?
Unfortunately, some people are exploiting the relief efforts meant for the true victims of the hurricane. You may be surprised to know that Louisiana law requires you to report any knowledge of insurance fraud to the Fraud Section of the Department of Insurance. Reporting insurance fraud is also in your best interest because it costs you and me money. Statistics indicate that more than 10 percent of every insurance dollar we pay goes to make up for insurance claims fraud.
We follow up on every insurance fraud tip we get, and you can report your suspicions of fraud confidentially. Make your fraud report by calling our toll free number, 1-800-259-5300, and asking for the Fraud Unit, or by calling the Fraud Unit directly at 225-342-4956. Or, fill out your report on the Internet by going to our website, www.ldi.state.la.us, and clicking on Report Fraud.
One of two major sources of information about fraudulent insurance activities is individuals like you. The other major source is insurance companies, who can lose their right to do business in the state if they don’t report suspicions of insurance fraud committed by their employees, agents or the general public.
Individuals usually contact us quickly when they feel their insurance agent is pocketing their money instead of sending it to the insurance company. However, we also need to hear from you and your neighbors if you have reason to believe that someone is committing claims fraud. The bit of information you give us may not seem like much to you, but it could be that one piece of the puzzle that will lead to the conviction of a perpetrator of fraud. For example, in one case, our Fraud Unit received an anonymous tip that a homeowner had submitted a bogus theft claim for valuable personal items that the homeowner still had. That anonymous call started an investigation that led to the arrest and conviction of the guilty parties.
If you have reason to believe that an individual or a group has committed insurance fraud, do your part by passing that information along to us. We’ll do the rest.
After all the flooding caused by Katrina and Rita, I'm thinking about buying flood insurance for my car. Can I do that, even if it is an older car?
The only insurance you are required to carry is a liability policy to cover bodily injury and property damage to other people and their property. To help you decide whether to carry flood insurance (comprehensive) coverage, let's look at the protection you would get for your money.
Comprehensive insurance covers a wide range of damages that may occur through no fault of yours, including fire, theft, malicious mischief, vandalism, glass breakage and flooding. Notice that some of those losses can be quite costly regardless of the age of the vehicle. Replacing a windshield to pass a safety inspection is a notable example. Deductibles range from zero to $250. The higher the deductible, the lower the premium. If, for example, your vehicle is stolen and wrecked, under a $250 comprehensive deductible, you pay the first $250 and the policy would pay the rest, up to the insured value of the vehicle.
Specific factors you will want to consider before making a decision about buying this comprehensive coverage are the cost of coverage and the insured value of the vehicle. Talk with the agent (producer) who has the liability insurance on that vehicle to learn how much comprehensive coverage would cost and how much the insurance company can be expected to pay if the insured vehicle is damaged or destroyed.
You will also want to take into consideration the possibility that, as a second vehicle, this one may very likely be left behind if there is a major flood event that causes you to have to evacuate quickly.
If you decide to add comprehensive to the liability policy on this or any other older vehicle, do the math periodically on the comprehensive coverage just as you would on the more expensive collision coverage. When the price is right, policyholders often keep comprehensive on a vehicle as it ages because it is relatively inexpensive.
Hurricane Katrina has raised a lot of questions about homeowners and flood insurance. How do I make sure that I am properly covered in the future?
I always tell people they should review all their insurance policies at least once a year. Usually the beginning of the year is a good time to do that. But, if I were you, I'd be looking over all my policies right now.
Some important things you should consider when reviewing your insurance policies are:
1. Contact us here at the Department of Insurance.
The Louisiana Department of Insurance works for you. We are an unbiased source for
information that can help you understand what you need and should expect from your
insurance policies and providers.
2. STOP. CALL. CONFIRM...before signing up for any new policies. Call the
Department to verify that the insurance company and producer you are dealing with
are legitimate and licensed to do business in Louisiana.
3. Schedule a routine insurance check-up.
It is a good idea to get with your insurance providers at least once a year to make
sure you have the right insurance, in the right amounts, to adequately protect you
and your family. Be sure to let them know of any changes in your life, such as marriage
or a birth in the family or additions to your home.
4. Dig for discounts.
Ask your producer about ways you may be able to reduce the cost of your coverage.
Some companies offer discounts for such things as good driving, good grades, special
education and training, and safety equipment, as well as discounts for multiple
policies and healthy lifestyles. Also inquire about the cost benefit of opting for
higher deductibles.
5. Filing a complaint.
If a claim has not been resolved to your satisfaction in a reasonable amount of
time, contact us at the Department of Insurance. Often, your questions can be answered
without a written complaint. However, if you feel you need to file a formal complaint,
contact us for a complaint form and a copy of our brochure, How to File an Insurance
Complaint.
How do I choose a reliable, professional contractor to repair the hurricane damage on my home or business?
If Hurricane Katrina has left you in need of a contractor, be extra careful. Get bids from at least three different sources. Do not do business with a contractor that cannot show proof of insurance. Also, only do business with a contractor that is bonded, which will offer you some protection if the job is not satisfactorily completed or supplies purchased to make your repairs were not paid for.
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 though by calling each reference and discussing the contractor’s work in some detail.
In addition, call your Better Business Bureau to learn if there have been any complaints
filed against them. Be especially cautious in dealing with an out-of-state con
who may have just breezed into town to take advantage of the local situation.
Before any work is begun, request a clearly worded, itemized contract. Review it with the contractor and make sure you understand and agree with its contents before the contract is signed. The contract should include the following:
· A separate breakout of labor and cost of materials.
· The contractor’s responsibility to get all required permits.
· The date the project is to begin and the date it is to be completed.
· Proof of insurance coverage from the start date to the finish date.
· A statement guaranteeing that the work area will be left in its original
condition when the job is done.
Go one step further and ask that the contractor’s insurance carrier mail a certificate of insurance coverage directly to you. Finally, don’t do business with a company that demands money from you upfront.
Anyone with insurance-related questions or concerns is encouraged to contact the Department of Insurance. PHONE:1-800-259-5300 or 225-342-0895 ADDRESS: Louisiana Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214 E-MAIL: public@ldi.state.la.us WEB SITE: www.ldi.la.gov
Hurricane Katrina has raised a lot of questions about homeowners and flood insurance. How do I make sure that I am properly covered in the future?
I always tell people they should review all their insurance policies at least once a year. Usually the beginning of the year is a good time to do that. But, if I were you, I'd be looking over all my policies right now.
Some important things you should consider when reviewing your insurance policies are:
1. Contact us here at the Department of Insurance.
The Louisiana Department of Insurance works for you. We are an unbiased source for
information that can help you understand what you need and should expect from your
insurance policies and providers.
2. STOP. CALL. CONFIRM...before signing up for any new policies. Call the
Department to verify that the insurance company and producer you are dealing with
are legitimate and licensed to do business in Louisiana.
3. Schedule a routine insurance check-up.
It is a good idea to get with your insurance providers at least once a year to make
sure you have the right insurance, in the right amounts, to adequately protect you
and your family. Be sure to let them know of any changes in your life, such as marriage
or a birth in the family or additions to your home.
4. Dig for discounts.
Ask your producer about ways you may be able to reduce the cost of your coverage.
Some companies offer discounts for such things as good driving, good grades, special
education and training, and safety equipment, as well as discounts for multiple
policies and healthy lifestyles. Also inquire about the cost benefit of opting for
higher deductibles.
5. Filing a complaint.
If a claim has not been resolved to your satisfaction in a reasonable amount of
time, contact us at the Department of Insurance. Often, your questions can be answered
without a written complaint. However, if you feel you need to file a formal complaint,
contact us for a complaint form and a copy of our brochure, How to File an Insurance
Complaint.
Many family members will be staying at our home because of
Hurricane Katrina. Do I need to make changes in my homeowners policy to be sure
they are covered as members of the household?
You should let the insurance representative and company who handles your homeowners policy know of the change in your household as soon as you can.
Your family will be covered under the liability provisions of your homeowners policy.
If, for example, someone visiting your home makes a claim against your homeowners policy for something for which a family member is allegedly responsible, it would be covered. However, as a member of your household, your family member cannot claim liability damages under your homeowners policy.
Personal belongings could present a special problem, depending on their dollar value. If, for instance, your guests have jewelry or other valuables with them, you will want to consider additional insurance. A rider, similar to the one you might have on your own valuables, might be your best solution in that case. Your insurance representative can help you decide on your best option, depending on the specific situation.
A word about minors: Your basic homeowners coverage would extend to minors living in your home, with some possible exceptions. If the minor is a foster child or an evacuee, discuss with your insurance company what special rules may apply. Be prepared when you contact your representative by having with you any written contracts concerning the arrangement that may affect your homeowners liability.
Adult relatives and their possessions would be considered a part of your household, as minor relatives are. However, the personal possessions of adult nonrelatives might be covered under your homeowners policy, although they personally would not be covered by the liability provision.
Did Hurricane Ivan teach us anything about what we should do before a mandatory storm evacuation?
Actually, Hurricane Ivan reminded us of a lot of common sense things we should already know. For example, if you have to evacuate because of a storm threat, leaving your home or other property behind, you need a good plan for protecting that property and its value to the greatest extent possible.
We usually remember to tie up boats securely in advance of a storm, but what about that second family car and other motor vehicles? We usually think to make arrangements for family dogs and cats, but what about other, perhaps larger, animals that depend on us for their care? We usually remember to have a copy of our insurance card in the glove compartment of the vehicle we are driving, but what about insurance papers on the insured property we leave behind? I could go on and on, but let's take a closer look at the items I've mentioned.
If flooding is a concern in the area you are evacuating, think about whether there is a place on higher ground where motor vehicles and other unattached property could be stored, rather than in their usual, more flood susceptible, area.
If you have animals other than the usual pets you may be taking with you, consider checking now on whether there are animal shelters that would keep those other animals for you in the event of an emergency. Also, don't leave larger animals confined in fenced areas that may go under water during your absence.
And what about those important insurance papers? If you have an insurance loss because of a storm or other event that causes you to evacuate, your insurance producer's office and all the local phone services may be shut down, along with the local bank branch that holds your safety deposit box. To the greatest extent possible, have copies of insurance policies and other important papers with you in a waterproof container, even if it's only a plastic zipped bag. This will allow you to call an insurance company office outside your area and establish proof of a claim even before service to your local area is restored. If you have difficulty reaching the company, you will have the information you need to call and ask us for an alternative number.
Let's hope we don't see another Ivan or comparable disaster anytime soon, but if
we do, let's hope we have learned something from the ones that came before.
Are Acts of God and Acts of Nature the same thing? Are they covered by insurance?
The terms Acts of God and Acts of Nature are used to describe similar kinds of occurrences that, for the most part, are beyond human control. Hurricanes, earthquakes, and floods are commonly used as examples.
Most insurance policies do not directly cover the issue of coverage of Acts of God. Instead, insurance policies, especially homeowners or other property coverage, generally list either the perils that are covered or the ones that are excluded from coverage. Acts of God are usually not treated as a group.
Property insurance coverage on your home, for example, can range from a standard fire insurance policy that only covers a few types of losses to an All Risk policy that covers all kinds of losses to the property except those that are specifically excluded. The type of insurance needed to qualify for a home loan, or the cost of the policy, often dictates which policy an individual policyholder chooses.
Flood insurance is a familiar example of a peril that you can always expect to be excluded from your homeowners policy. Insurance to cover flooding must be bought as a separate policy. Some property insurance policies also exclude wind damage while others may include the additional cost of a separate hurricane deductible. For an additional premium, coverage for these commonly excluded perils can be purchased. Note that flooding, wind damage and hurricanes may all be defined as Acts of God, but they are treated quite differently in property and casualty insurance policies.
The rules governing Acts of God on homeowners insurance also apply to renters and commercial property insurance. However, automobile insurance must be considered as a separate issue. If a vehicle is covered by comprehensive insurance, it is generally insured for most physical loss (such as fire and flood), including theft. One notable exception is that comprehensive coverage excludes collision, which must be added to the policy for an additional cost.
Your question about Acts of God is a good one because it brings to mind the number of combinations of property insurance coverage that are out there. Policyholders need to educate themselves on what is and is not covered under the specific terms of each individual policy before a loss occurs.
A friend of mine says he lives in a “no flood” zone. He says that means his house will never flood, and he couldn’t buy flood insurance even if he wanted to. Is that true?
Anyone who lives in a community that participates in the National Flood Insurance Program can purchase flood insurance, and that includes virtually all of Louisiana. The insurance is available through local producers participating in NFIP. Your friend’s understanding of flood insurance may be based on the fact that most home mortgages require homebuyers to purchase flood insurance if the house is in what is referred to as a flood zone. Although lenders do not require flood insurance for those areas that have a low to moderate risk of flooding, it is important to note that 30% of flood losses occur in areas that are not listed as flood zones. Not being in a flood zone does not guarantee that your home will not flood under certain circumstances.
The good news for those who do not live in a flood zone is that their flood insurance will be less expensive than it is for people who do. Premiums are calculated based on the amount of risk reflected in current flood maps. Anytime there is heavy rain, flooding can be caused by anything from new construction in the area to a stopped up storm drain. In a flood-prone state like Louisiana, the majority of people probably live in areas that would suffer flood damage to homes and other property under certain circumstances. Because Louisiana is so floodprone, all residents should take a long hard look at whether flood insurance on their house and its contents would be a wise investment.
Some people wonder why they should buy flood insurance if they can collect from the federal government when a flood occurs. According to FEMA, federal disaster assistance declarations are awarded in less than 50 percent of flooding incidents. Furthermore, the annual premium for a flood insurance policy is less expensive than interest on a federal disaster loan, even if you do qualify for one.
Contact your local agent for information on how to apply for flood insurance, and remember that it takes 30 days for a new flood insurance policy to go into effect.
What should I do after a flood?
Here is list of some important things you should remember after a flood:
1) Contact your insurance producer right away. Have your policy or policy number handy at all times.
2) Give your producer the phone numbers and addresses where you can be reached day or night.
3) When an adjuster contacts you, ask for identification. Do not permit an adjuster to inspect your property without proper I.D. Unscrupulous repairman often try to take advantage of people who have suffered storm losses.
4) Protect your property from further damage. Make whatever reasonable temporary repairs are needed, and keep a record of these repairs for possible reimbursement. Don't forget to cover broken windows and holes in the roof or walls.
Remember: Flooding generally is NOT covered under homeowners' policies. Flood insurance is a separate policy, though it may be purchased from local producers.
If you do not have flood insurance, there are other possibilities for reimbursement. Check other policies for opportunities for recovery.
Examples: *Loss of food by spoilage due to electrical out- ages or damage from power
surges related to storms may be covered by your homeowners policy. *Damage to your
motor vehicle may be cov- ered under comprehensive on your auto policy. *Some falling
tree damage may be covered under your homeowners policy.
Do not pay money, make any deposits for repairs, or sign any contracts for repairs
until you have been instructed to do so by your adjuster and you have called your
Better Business Bureau in your area to check on the people who are to do the work.
FINAL NOTE: If you are thinking of buying a flood insurance policy, do not delay. Flood insurance will not pay until 30 days after you buy the policy.
To receive a free copy of our Hurricane Tracking Map and Preparedness Guide, and our award winning storm advice publication, Weathering the Storm, contact us at 1-800-259-5300 or 225-342-0895. Address: Louisiana Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804.
When is the best time to buy flood insurance? I say it's when there is a drought, but my friend says that's a waste of money. Which of us is right?
It is dangerous to make insurance decisions based on when you think you may need the coverage. After all, you don’t wait to buy collision on your new car until you feel the traffic is worse than usual, and you don’t wait to buy fire insurance on your home in a wooded area until a forest fire is likely. If there is any likelihood that flooding will occur around your home, consider getting insurance coverage now.
In many instances, insurance company guidelines will prevent you from buying insurance
just before you may need it. Within the last few years, the National Flood Insurance
Program extended the waiting period for flood insurance from 5 days to 30 days.
This extension means you are not covered by your flood insurance policy until 30
days after you sign the paperwork and pay the premium. Similarly, some companies
stop selling property insurance in hurricane-prone South Louisiana once a threatening
storm enters the Gulf of Mexico.
The entire concept of insurance is based on your paying a limited amount of money over a period of time. You do this in order to have the benefit of a large amount of money to cover a loss that may or may not occur at some time in the future. Meanwhile, the insurance company bears the risk of having to pay out a large sum of money if you have a significant loss, no matter how long the policy has been in effect.
Your insurance producer, or another insurance company representative in your area, should be able to sell you the flood insurance you need. Furthermore, flood insurance on your home, or the ground floor residence you rent or lease, is probably not as expensive as you think. There was a limited increase in premiums last year, but no additional increases are expected in the near future. In addition, the premium is the same, no matter where you buy it. You don’t have to shop around.
Does my homeowners insurance cover hurricanes?
It is extremely important to know the type of insurance you have and what your insurance policy covers before disaster strikes. The hurricane season runs from June to November, and every year brings news of the financial and emotional devastation caused by hurricanes and other severe weather.
The first thing to be aware of when reviewing the insurance coverage on your home is that homeowners or renters policies will not cover flooding, no matter where you live. However you can buy flood insurance from a local property and casualty insurance agent who has an agreement with the National Flood Insurance Program. And remember, you do not have to live in a designated flood plain area to be eligible.
Some homeowners policies, especially on property along the coast, may exclude wind and hail damage. You should find such an exclusion clearly stated on your homeowners policy or other correspondence from your insurance company. Supplemental coverage for wind and hail is available through two alternative sources, the FAIR and Coastal insurance plans. Check with your local insurance producer if you have questions about possible wind and hail damage exclusions on your homeowners policy.
Even though your homeowners insurance may cover all the usual perils except flooding, be aware that a large percentage of the loss from a hurricane is flood-related. Therefore, even though you have a homeowners policy that covers the wind and rain damage of a hurricane, the chances are that flooding related to the hurricane will not be. That is especially true for floods that are caused by hurricanes but occur in areas away from the coast.
I want to leave you with two words: PLAN AHEAD. Flood insurance will not pay for damage that occurs fewer than 30 days after you buy the coverage. Also, you cannot buy property insurance in a hurricane-prone area to protect you against a storm that has already entered the Gulf.
Please note that the flood, wind and hail exclusions discussed here apply to homeowners and renters insurance. They do not apply to the comprehensive coverage you may have on your private passenger motor vehicles.
To track this year’s major storms on your free copy of our "Hurricane Tracking Map and Preparedness Guide," call us at the Department of Insurance for your free copy.
Hurricane season is here again. Can you give some advice on how to be prepared from an insurance standpoint?
No matter where you live in Louisiana you are subject to the effects of severe weather such as tornados, hail storms, floods and hurricanes.
Many people who don't live near the coast don't realize a hurricane can cause devastation all across the state, and during dry spells we sometimes forget just how devastating a flood can be, even without strong winds of any kind. Let's look at some of the ways you can practice insurance preparedness well before the storm warnings go up in your area.
One of the most important things you can do to prepare for hurricane season is to have proper homeowners and flood insurance. Every year we hear news reports of families who are wiped out because the damage to their homes or businesses was from flood damage, and they did not have flood insurance.
Everyone in hurricane-prone South Louisiana needs to know that flood insurance must be bought as a separate policy. And
when you see a TV report about someone's flood loss, it may be too late for you to buy a policy before the next big storm hits your area. Planning ahead is critical when you purchase flood insurance, because the policy may not go into effect until 30 days after you buy it. Also, in South Louisiana you may have trouble getting auto or property insurance if a hurricane or tropical storm has entered the Gulf of Mexico.Once you have the insurance you need, do an itemized inventory (including serial numbers) of the furnishings, clothing and valuables in your house. The list, along with pictures or a video of each room and the outside of your home, will help your adjuster assess your damage if you do have a claim.
Keep copies of your insurance policies and your inventory list in a separate location, such as a safety deposit box, and take a copy with you if you have to evacuate. Tell family members or a trusted friend where to find the extra set of records in case you are unable to get to them yourself after the storm. Include with your insurance papers the phone number of your producer or other insurance company representative and a number for each company with which you have vehicle or property insurance.
If you should have storm damage to your property, contact your insurance agent or other company representative promptly. If you are unable to reach someone with the company, call us here at the Department of Insurance for further information.
My home and my truck were damaged this week by a storm. I don't
know yet if it was from a tornado or straight line winds. Will my homeowners insurance
pay more if the damage was caused by a tornado? What else do I need to know before
I file a claim?
We hear a lot of discussion about whether storm damage was caused by a tornado
or straight line winds. The fact is that the amount your insurance policy will pay
is not affected by whether the damage was caused by a tornado or straight line winds.
The amount paid will depend on a number of factors, including the dollar amount
of the deductible, the type of damage, and the type of property insurance policy
you purchased. Although you didn't mention flood damage, always remember that flooding
is not covered under your homeowners, renters or other traditional property insurance.
To find out what your homeowners and automobile insurance policies cover, contact
your producer or other insurance company representative as soon as possible. It's
a good ideas to have your insurance policy or policies on the damaged property with
you when you call. The policy number and other information will help your producer
or company answer questions about what your insurance covers. When filing a claim,
especially after a storm, be sure to give a phone number where you can be reached
during the day.
If you have hail or other damage to your truck and it is drivable, you may want
to meet the adjuster sometime during the day at a place close to where you work.
Of course, the adjuster will have to come to your home during daylight hours to
inspect the damage to your house and other immovable property.
Comprehensive insurance on your damaged vehicle will pay for hail and other storm
damage just as it does other covered perils. For example, if you have $250 deductible
on your car, the insurance company will pay for damages up to the value of the car,
minus the $250 deductible. Any car that is financed or leased is probably going
to have comprehensive coverage on it, although the amount of the deductible will
vary. If your liability policy doesn't include collision and comprehensive coverage,
look for a separate policy in your car loan or lease papers.
I have heard a lot of severe thunderstorm watches and warnings lately.
Can you tell me more about them?
A severe thunderstorm watch, issued by the National Weather Service, means that
weather conditions indicate you may have a bad storm in your area in the next few
hours.
When a severe thunderstorm watch is in effect, you should tell your family to be
ready to go to the safest place available in the house if the storm hits. Then watch
the sky and listen to the radio or television for further information.
A severe thunderstorm warning is issued when such a storm has been sighted or is
indicated by radar. At that point, everyone should go to the designated safe place
and listen to a battery-operated radio or TV until the danger has passed.
We expect thunderstorms to have lightning and some rain, but they may also bring
hail, strong winds, heavy rains that cause flash flooding, and tornadoes. We fear
tornadoes, and we should, but the fact is that "straight line winds" of 100 miles
per hour or more cause the most thunderstorm damage.
I also want to pass along a couple of interesting, and potentially life saving,
tips about storms. Most of us know to stay away from trees during a thunderstorm
and to lie flat if we are caught in the open during a tornado, but the instructions
are different if we are caught in an open area with lightning striking all around.
If that happens, experts tell us our best defense is to drop to our knees and bend
forward, putting our hands on our knees.
Also, hailstorms need to be taken very seriously, not just because of damage to
crops and other property, but because they endanger human life. Hail stones, which
can be as large as softballs, often fall in large quantities in a short period of
time. Always take cover immediately in a hailstorm. If you are inside a building,
stay away from glass, especially large windows or sky lights. If you are in your
car, stay put. You may not feel safe there, but you will be in greater danger if
you try to leave the car to seek other shelter.
I heard you say the Department works with disaster recovery
centers after hurricanes. Is such help available for other kinds of storms and in
other parts of the state?
Yes, we at the Department of Insurance work with the Office of Emergency Preparedness
and other local, state and national government agencies to assist victims in disaster-stricken
areas, regardless of the cause or the location of the disaster.
Let’s review what happens when a natural devastation from a hurricane, a tornado,
or torrential rains, occurs. State and local governments go into action to help
people cope with the damage and displacement they are experiencing. When local and
state assistance is not enough, the governor requests assistance from the federal
government. A presidential declaration allows the federal government to join state
and local officials to provide assistance to people in the stricken area. At the
same time, we step up our consumer-assistance activities, working closely with all
of those involved in the disaster efforts to enable victims to get their insurance
claims filed and paid as soon as possible.
Here’s a example of our involvement. After Hurricane Georges followed close
on the heels of Tropical Storm Frances in South Louisiana, three disaster recovery
centers were set up in Orleans, Jefferson and Lafourche parishes. One member of
my staff was immediately assigned to work full time with the Orleans and Jefferson
parish centers, and we provided the LaFourche Parish center with publications on
what to do after the storm that included our toll-free number. We closely monitored
our toll-free consumer phone lines to make sure we had enough people available to
handle the additional calls.
Additionally, we made full use of the media to get the word out to people that they
should call us if they encounter problems getting their insurance claims settled.
We also warned them to beware of con artists when having repairs done and to keep
records of temporary repairs they made before the insurance adjuster arrives.
I hope your community never needs our services in a disaster, but if you do, we
will be there to help you in every way we can, no matter where you live in the state.
I know that my homeowners insurance does not cover flooding.
What about other acts of nature like tornadoes, hurricanes, and hail? Are they covered?
It is extremely important to know the type of insurance you have and what your insurance
policy covers before disaster strikes. Hurricane Floyd has shown us numerous examples
of the financial and emotional devastation that can take place when someone finds
out they are uninsured or underinsured after a major storm.
As you point out, flooding is not covered under your homeowners or renters insurance.
However, you may purchase flood insurance through your property and casualty insurance
carrier or directly from the National Flood Insurance Program. Furthermore, you
do not have to live in a designated flood plain area to be eligible for flood insurance.
Some homeowners policies, especially for property along the coast, may also exclude
wind and hail damage, but that fact should be clearly stated in the homeowners policy.
Supplemental coverage for wind and hail is available through two alternative sources,
the FAIR and Coastal insurance plans. Policyholders with questions about wind and
hail damage exclusions should check with their local insurance producer for details.
Please note that the flood, wind and hail exclusions discussed here apply to homeowners
and renters insurance. They do not apply to the comprehensive coverage on your automobile
insurance.
Even though your homeowners insurance may cover all the usual perils except flooding,
be aware that a large percentage of the loss from a hurricane is flood-related.
Therefore, even though you have a homeowners policy that covers the wind and rain
damage of a hurricane, the chances are that flooding related to the hurricane will
not be.
Those who do not live on the coast should not ignore hurricanes. People whose homes
are in hurricane-prone areas and are flattened by a storm may be covered under their
homeowners policies, while people living 100 miles from the coast will not be covered
if their homes are flooded because of that same hurricane.
I want to leave you with two words: PLAN AHEAD. Flood insurance will not pay for
damage suffered less than 30 days after you buy the coverage. Also, you cannot buy
property insurance in a hurricane-prone area to protect you against a storm that
has already entered the Gulf.
Now that the hurricane season has started, can I still buy additional insurance coverage?
You still have some time, unless a hurricane is approaching when you read this. Most insurance companies will not issue new homeowners coverage once the National Weather Service has issued a hurricane watch or warning. Furthermore, this moratorium on writing new coverage usually remains in effect for 48 hours after the watch or warning has been lifted.
We had a real scare last year when Hurricane Georges bore down on the Louisiana coast, but we were fortunate that we did not feel the full force of the hurricane. However, just because it didn’t happen last year doesn’t mean it won’t happen this year. This season meteorologists are predicting 14 tropical storms, nine of which will become hurricanes, and four of those will be "intense hurricanes." In any disaster situation, preparation is key.
If you live in an area prone to hurricane damage, review your property insurance policies for coverage amounts and coverage limitations right away. Standard business, homeowners and renters insurance policies do cover wind damage from hurricanes, but they don’t cover damage from flooding even if it is caused by the hurricane. You might also ask your producer about wind-driven rain, which may be excluded on some policies.
Flooding is covered under policies provided through the National Flood Insurance Program which can be purchased through insurance producers in your local community. Be advised, though, that flood insurance has an automatic 30-day waiting period. This means that the policy has to be in effect 30 days before it will pay for flood damage.
Now is also a good time to inventory all of your personal possessions. If your belongings are damaged in a storm, this list will greatly simplify the claim filing process. The inventory information, along with a copy of your insurance policy, should be stored in a safe place away from your home, such as a safety deposit box.
If you have any doubts as to what is and isn’t covered under any of your insurance policies, call your producer or company - before disaster strikes.
Contact us for your free copy ourHurricane Tracking Map and Preparedness Guide.
I have heard you say on the radio that everybody who lives in Louisiana should at least consider buying flood insurance. I’ve thought about it, but my area has never flooded.
A third of the claims filed with the Federal Emergency Management Agency’s National Flood Insurance Program come from areas that are not considered to be "flood prone." Because of the relatively small premium involved, I would recommend that you seriously consider buying flood insurance unless you literally live on a hill. And you are right; I give that same advice to anyone living in Louisiana. Because you live in an area that does not usually flood, you will pay less for flood insurance than you would if you lived in a floodplain. At least you have the advantage of paying less for flood insurance where you live than you would if you lived in a floodplain.
Many people make the mistake of assuming their homeowners or renters insurance covers flood damage. It doesn’t. Generally speaking, if there is a storm and the damage is from water coming down from above, it is covered under your homeowners. If, on the other hand, the damage is caused by water that comes up because of flooding or runoff from heavy rainfall, it is only covered under flood insurance. Also remember that your basic car insurance doesn’t cover your car if it floods. That comes under comprehensive coverage, which can be added to your basic liability policy.
Some people feel they can rely on disaster relief if their homes or businesses are flooded. Even if disaster assistance is available, relief generally comes through one of two forms of assistance: a Small Business Administration loan that must be paid back with interest, or a one-time-only grant of about $2,500.
Another thing to remember about flood insurance that you cannot buy it at the last minute. When a storm is about to enter the Gulf or cross the Texas/Louisiana state line, it is too late to buy flood insurance to cover that storm. The reason is that, regardless of where you live in the state, there is a 30-day waiting period before the flood insurance coverage goes into effect.
National flood insurance, available in all 50 states, can be purchased through many local insurance agencies.
I know what I should do to prepare for a hurricane or other storm. What are some things I would need to do, or avoid doing, after a storm?
When the storm is over, you should contact your insurance producer or company immediately to report any loss you might have incurred. If you cannot reach your local producer, you may find a number for the insurance company on your policy. You can also learn how to contact your insurance company by calling our toll-free number, given below.
If you are not able to stay in your home, let your producer or insurance company know where you will be. Make sure to keep a log of who you spoke to, the date, the time, and a summary of your conversation. Be sure to ask questions if you do not understand instructions.
You should take photos of the damage before you cover any holes in the roof or rip out the water-logged carpet. Be sure to cover leaks in the roof and make only temporary repairs necessary to prevent further damage. Make sure to keep the receipts for any repairs, and give the receipts to the adjuster, along with the photos you have taken.
You are at your most vulnerable when disaster strikes, so look out for people who want to take advantage of you. Do not let strangers make repairs for you unless someone you trust recommends them. Do not do business with so-called repairmen who want you to pay money up front. You must always be on your guard for home repair rip-off artists who overcharge, perform shoddy work and often leave without finishing the job. You should also be leery of builders or contractors who go door-to-door selling their services, especially those not known in your community, or are offering dramatically reduced prices.
After a major disaster, it may take a little longer than usual for the insurance company to settle your claim. Keep an eye on your calendar and get back to your producer if your settlement doesn’t come through in a reasonable length of time. If you have problems coming to an agreement with your company, feel free to contact us.
There seems to be more danger of hurricanes this year than the last couple of years, but I have recently moved from New Orleans to North Louisiana. Do I still need to prepare for a hurricane?
You are right in thinking there may be more hurricane activity this year than in the recent past. El Nino helped keep hurricanes out of the Gulf Coast area for the last few hurricane seasons, but now Louisiana is feeling the effects of La Nina, the reverse weather pattern, and there is a greater chance of hurricane activity.
No matter where you live in the state, you should be concerned about the effects of hurricanes and other major storms. The devastating winds and torrential rains of a hurricane can extend inland for hundreds of miles. In North Louisiana, you are still in danger of flash floods and tornadoes that can be spawned by hurricanes.
When severe weather is approaching your area, listen carefully to local authorities to determine what threats you can expect and take the necessary precautions to protect yourself, your family, and your property.
If you are given an order to evacuate because of threatening weather conditions, do so. Contact a friend or family member and let them know where you will be and how to reach you. Remember to shut off your water and electricity and to lock up your house. If you have to leave your pets behind, provide a comfortable area for them with plenty of food and clean water.
If your area floods, be aware that drowning is the number one cause of flood deaths, and most of these deaths occur during flash floods. Do not walk through flowing water. It only takes six inches of moving water to knock you off your feet. Everyone, particularly children, should stay away from drainage ditches during floods or flood warnings. Electrocution is also a leading killer in floods, so stay away from electrical wires and power lines. Report downed power lines to your utility company, local police or fire department.
The Department of Insurance publishes a hurricane preparedness guide and a hurricane tracking chart. Both guides contain a lot of good information about what to do before, during and after a hurricane or other major storm. If you would like to receive a free copy, let us know.
I know there are evacuation plans for people during a natural disaster, but what can I do with my pets?
That’s a good question. Many people don’t think about their pets when they have to evacuate their homes in the event of a natural disaster such as a hurricane, flood or forest fire. Advanced planning is the key to any evacuation plan, including one that involves pets.
There are some general guidelines that you can follow to help keep your pets safe. First, if you evacuate your home, make every effort to take your pets out with you. That is particularly true of animals that are usually kept inside. Also, make plans now to ensure that all your pets, especially dogs and cats, wear some form of identification tag that includes your name and telephone number.
Try to learn in advance where you will evacuate to if you have to leave your home. Because many emergency shelters do not allow animals, you may want to contact hotels or animal clinics outside your area to find out if they accept pets. Friends, families, and boarding kennels are other possible safe houses for them in an emergency.
If you choose not to evacuate, or have no other choice but to leave your pets behind, don’t leave them chained or penned up outside. Some animals may be better off if they are allowed to roam free. If you have indoor animals that will not be evacuated, make the house as safe as possible for them. Place any pets that are in cages or carriers away from windows and heavy objects that might fall on them. Leave plenty of dry food and water in sturdy containers that can’t be turned over easily.
If flooding is a possibility, make sure cages or carriers are off the floor, preferably on built-in counters. If you have animals that are not in a cage or carrier, try to ensure that they will be able to get to areas in the house that will remain above water level.
If you have questions regarding what to do with your pets, contact your veterinarian or local humane society.
I have been told I have to buy separate flood insurance for my
new mobile home. What happened? The last time I bought a mobile home the flood coverage
was included in my property insurance.
Coverage for flooding used to be included in your property insurance on
your mobile home, but it isn't anymore. I'll explain why.
Years ago, when you bought a mobile home it was delivered to you with axles and
tires left on it. If flood waters started to rise or a hurricane was in the forecast,
all you had to do was hook up the mobile home to your car or truck and move it to
higher ground.
Your mobile home was considered "movable," and flood insurance was included
in the property insurance on it.
The dealer is now required by law to securely tie down your mobile home at the time
of delivery. And once it is securely anchored, you can no longer move it quickly
if a storm is coming.
With the increase in mobile homes that were tied down, it didn't take insurance
companies long to realize they were looking at an increase in the risk of flooding
of mobile homes. One by one, companies started excluding flood insurance coverage
from their property insurance policies for mobile homes.
As a result, if you want flood insurance on a mobile home today, you will probably
have to buy a separate policy, just as you do on any residence.
I always recommend that people living in Louisiana seriously consider buying flood
insurance for their homes, and that holds true for mobile homes, too, now that the
coverage must be bought separately.
The insurance producer who carries the insurance on your mobile home can sell you
the flood insurance you need or put you in touch with someone who can. And, remember,
you shouldn't wait for storm season to buy the flood insurance. The policy has to
be in effect 30 days before it will pay in the event of a flood.
You talked about a publication on hurricanes during a recent radio talk show. Can I get a copy?
Yes, we at the Department of Insurance have a new publication called the "1997 Hurricane Tracking Map and Preparedness Guide." See details of how to get your copy at the end of this column.
Perhaps you are thinking you don't need hurricane information because you don't live on the coast. However, even if you live in north Louisiana, you are still in danger of the torrential rains and tornadoes that can spin off of hurricanes.
While our hurricane tracking map allows you to follow the course of the storm, the helpful hints that are included will remind you of things you should do before, during and after a hurricane or other violent storm. Some of those hints are listed below.
Before a hurricane, you should make sure you have enough insurance coverage. Check with your property and casualty insurance producer if you do not know what damage to your home or other property would be covered if a major storm strikes. If you are thinking of buying flood insurance, do so as soon as possible. There is a 30-day waiting period from the date of purchase until the policy goes into effect.
During a hurricane, you should seek shelter, try to remain calm and listen to your battery-powered radio for news and instructions.
After a hurricane, there are several things you can do to ensure that your insurance claim is handled as quickly as possible:
1) Contact the producer or producers who sold you your homeowners and flood insurance policies immediately. If your damaged automobile is insured with a different producer, contact that person as well.
2) When meeting with an insurance adjuster about damage to your home, have your insurance policy and a list of your belongings with you. Have photographs of the damage that occurred both inside and outside your house.
3) Show the adjuster any damaged items that have been removed from the house, such as wet carpet.
4) Give the adjuster copies of the paid receipts for any temporary repairs you made to storm-damaged property.
Order your free copy of the "1997 Hurricane Tracking Map and Preparedness Guide" by calling or writing us at the toll-free number or address given below.
While evacuating for Hurricane Katrina, I got sick and had to go to a hospital in Shreveport. Is it true that I don't have to pay extra for going outside of my health plan's network?
No, you should not have to pay extra if you live in Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany, Tangipahoa, Washington, Lafourche, Livingston, St. Charles, St. James, St. John the Baptist, St. Mary or Terrebonne.
Governor Blanco has given me the authority, as Insurance Commissioner, to implement certain emergency insurance rules. Under Emergency Rule 17, citizens with health insurance coverage in the above-listed parishes may receive medical care out-of-network and prescription medications out-of-network without penalty. In other words, you should not have to pay extra for the treatment or for the prescription drugs for some time, which could be a matter of months.
If you have a health care plan that requires you to call a toll-free number for permission before entering a hospital or undergoing certain medical procedures, you should still call that number if you have it with you and are able to do so.
For more imformation on Emergency Rule 17, please visit our Web site, www.ldi.state.la.us, and click on Hurricanes Katrina and Rita. If you have any other questions please call the Department of Insurance at our toll-free number, 1-800-259-5300.
Anyone with insurance-related questions or concerns is encouraged to contact the Department of Insurance. PHONE:1-800-259-5300 or 225-342-0895 ADDRESS: Louisiana Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214 E-MAIL: public@ldi.state.la.us WEB SITE: www.ldi.la.gov