Flood Claims

Never Call Your Water Loss a Flood

Not every loss caused by water is a flood, although insureds often refer to water disasters such as a leaking pipe as a "flood." It is important to distinguish between a water loss and a flood because the coverage for these two events is completely different.

Water damage claims are covered by traditional homeowner insurance policies, subject to a myriad of exceptions. Flood claims are covered exclusively by insurance policies issued through FEMA (Federal Emergency Management Agency) based on the National Flood Insurance Act.

Flood claims present unique challenges:

• Federal law (not state law) controls flood claims.
• Flood claimants must file a proof of loss within 60 days of the loss regardless of the circumstances.
• The only way to extend the proof of loss deadline is with express written consent as established by FEMA's guidelines.
• A proof of loss that does not set forth the amount of money being claimed is insufficient.
• Flood claims are subject to a one-year suit-filing requirement.
• Flood claimants cannot recover for bad faith, lost interest, or attorney fees.

Most insureds do not have flood insurance. If they do, and a flood occurs, insureds need to act quickly in order to protect their rights. Knowledgeable assistance can help an insured comply with FEMA's rigorous and inflexible requirements.