FEMA Recovery

FEMA and the National Flood Insurance Program define the V-Zone as an area that has a 1% or greater chance of flooding in any given year, with these properties averaging a 26% chance of flooding over a 30-year period. Based on this definition and historical data, in 2009 FEMA issued an update to its policy regarding new construction and reconstruction in a V-Zone. The V-Zone already had special construction design requirements for structures located within its borders; however, the new regulations go a step further.

Under the updated policy, FEMA cannot fund any new construction in a V-Zone. This restriction includes the replacement of structures and/or facilities that have been totally destroyed by a disaster. A structure or facility is considered to be totally destroyed when the repair costs are equal to, or exceed, 90 percent of the cost to replace that facility or structure. Even if the value of the damages to a structure exceeds this “90% Rule”, FEMA can no longer fund the new construction in a V-Zone.

If the repair costs fall between 50 and 90 percent of replacement costs, FEMA may still fund substantial improvements to a damaged V-Zone property. These funds can be applied to repairs, improvements, and reconstruction of the structure/facility. Reconstruction may include purposeful demolition and rebuilding in the same footprint, as long as it does not exceed 110% of the original size of the building. (Under FEMA’s Public Assistance Program, reconstruction is considered as a form of repair project and not as new construction.)

This summary of the update to FEMA’s V-Zone construction policy is not all-inclusive and is only intended as an overview. For a more thorough understanding of how this policy updates affects you, contact one of our Disaster Recovery Consultants at Adjusters International.

What is the first thing that comes to your mind when you hear of a tornado?

Do you think of Dorothy and Toto and being whisked away to the Land of Oz?  If your home has been damaged by a tornado, chances are that you relate to the confusion and feelings of helplessness that Dorothy experiences when she realizes that she has landed in a completely different world.

Many parallels can be drawn between following the Yellow Brick Road and navigating your tornado insurance claim. Along the way you will be faced with many obstacles that you have to overcome:  be they sleep inducing poppy fields or the painstaking categorization of your losses.  While Dorothy needs to prove herself to the Wizard by defeating the Wicked Witch, you will need to prove your claim to the insurance company by valuing, documenting and substantiating every detail of your loss.

As Dorothy relied on the Tin Man and the Scarecrow to help her along the way, you will have to create your own group of trusted advisors to ensure that you follow all the steps to a full recovery.  If you enlist the help of a public adjuster or a disaster recovery consultant, you won’t be alone on your tornado-induced journey.  These specialists will guide you down the path to a full recovery and help you to get the most out of your tornado damage claim. Find out how the experts at Adjusters International can help you with your tornado damage claim.

The end of the road for Dorothy is the Emerald City and the Wizard of Oz that will help her to get home. At the end of the road for you is the insurance settlement that will help you rebuild your home.  Just like Dorothy, you also deserve to be able to go home again, because after all “There is no place like home”.

Even as the flood waters recede from your property, you should already be in contact with your agent or insurance company to start on your flood loss claim. It usually takes an adjuster a few days to get to your property, so make sure to get a time frame for when they will visit your property so that you, or someone you trust, can be present.

While you are waiting for the adjuster to arrive, you can start recording the level of damage to your property and your belongings.  Start by taking photographs of all the damaged property, including structural damage, damaged possessions, and any remaining water. Separate out the damaged items to take a full inventory including the details of each item such as the date purchased and value.  If local officials require the disposal of damaged items before your adjuster arrives, make sure to keep evidence from the damaged items (e.g. cut swatches from chairs, carpet, etc.) to provide your adjuster.

Once the adjuster arrives, they will walk through your property to evaluate the level of damage. It is important to accompany the adjuster in their walk-through so that you can clarify the scope of the loss, and to provide additional details regarding the value of the damaged property.

The National Flood Insurance Program requires that the Proof of Loss form be filed within 60 days of the flood.  This 60-day time period is non-negotiable, and if the Proof of Loss is not submitted (or is missing any required information) your claim will be denied.   The Proof of Loss form is a sworn statement that you agree with the adjuster’s valuation of the damage, and that your claim is truthful and accurate.

If you do not agree with the adjuster’s valuation, you have a limited amount of time to appeal their decision before the claim window closes. Once an adjuster has submitted his decision, they will rarely amend their report; therefore consider hiring a public adjuster to assist with your appeal. Public adjusters have special training and expertise in appraising, preparing and negotiating flood damage insurance claims. They work solely for the policyholder – not the insurance company.

For a more detailed overview on recovering from Flood Damage, read the Adjusting Today issue on “Flood: Understanding and Recovering from One of Nature’s Worst Disasters“.