Insurers Focused on Helping Those Impacted by Catastrophic Flooding in Texas, North Carolina, and New Mexico

WASHINGTON, D.C. - Insurers are focused on helping their policyholders begin the recovery process following the catastrophic flooding in Texas, North Carolina, and New Mexico, says the American Property Casualty Insurance Association (APCIA). Filing an insurance claim is a key step in the road to rebuilding after a natural disaster.

"We grieve and pray for those who have suffered unimaginable losses in the horrific flooding that has struck multiple areas of the country, especially my home state of Texas where so many young lives were lost," said David A. Sampson, president and CEO of APCIA. "In the face of so much tragedy, filing an insurance claim is not top of mind, but it is a key first step in helping people and communities rebuild. Insurers have quickly mobilized their response teams and are ready to help their policyholders begin the claims process."

Homeowners Insurance vs. Flood Insurance

• A standard homeowners insurance policy provides financial protection against disasters, such as wind and fire, by insuring the home itself and personal belongings inside of the home.
• Damage to personal and commercial property caused by a flood is not covered under a standard homeowners or commercial property policies. Insurance coverage for flood damage must be purchased as a separate policy.
• Flood insurance is typically purchased as a separate policy through the National Flood Insurance Program, which is the primary source for flood insurance in the United States. Sometimes flood insurance policies are purchased through a carrier in the private market.

Assistance for Flood Victims Without Flood Insurance

• Individual homeowners, business owners, and renters in locations declared to be Federal Disaster Areas will have access to Federal Disaster Assistance in the form of grants and loans through the Federal Emergency Management Agency.
• People who receive Federal Disaster Assistance for a flooded building will need to obtain flood insurance, which is one of the requirements for federal grants and low-cost loans. They will be required to maintain flood insurance throughout the life of their loans.

What To Do If Your Vehicle is Flooded

• Contact your auto insurer to report the damage and file your claim. Water damage to a vehicle is typically covered under an auto policy if the policyholder has chosen to purchase "comprehensive" physical damage coverage.
• If the water has risen above the floorboards, or the seats are wet, do not try to start the car. The electrical system is the most sensitive to water damage and trying to start the car could cause more damage.
• If your vehicle is missing, report it to the police.
• Open the hood and check the air filter, which is easy to find under the hood. If it is wet, do not try to start the car.

What To Do If Your Home is Flooded

• Shovel or scrape mud off floors, furniture, and walls before the mud dries. Then hose down the walls with clean water, starting from the ceiling.
• Major appliances, such as refrigerators and stoves, can be washed and dried completely. In most cases, they will not be damaged unless they were operating at the time the water covered them.
• Diluted chlorine bleach can be used to clean household items, appliances, walls, and floors and will help control odors.
• Wood furniture should be dried outdoors, but not in direct sunlight. Remove drawers and other moving parts before they dry.
• Food utensils and equipment should be washed thoroughly and sterilized before using. Any food that is open and exposed to flood waters should be discarded.

Recovering From a Flood

• Make a list of damaged items. If possible, put together a set of records, such as receipts and photographs, to establish what needs to be replaced or repaired.
• Your insurance adjuster will provide a Proof of Loss form which will need to be filed with your insurance company within 60 days of the flood.
• Use caution in hiring a contractor or other workers to help repair and clean up flood damage. To avoid scams and poor repair work, homeowners can save time, money and frustration by checking the licensing and credentials of the businesses and individuals that are hired to do repairs.