Communities like Kingwood are working hard to clean up the damage from last week’s storms. Your KPRC 2 news and weather teams are always looking out for you, especially after last week’s devastating flooding.
In this Q&A, we spoke to Rene Sigman, a storm damage attorney, to get you answers to some of the questions you may have when it comes to flooding and insurance claims.
Q: Rene, you’re calling the most recent damage in Kingwood – “Black Water” is Category 3. What does that mean?
A: The most recent flooding in areas like Kingwood is Category 3 Flood water which is known as “Black Water”. It is grossly contaminated water. Typically Sewage water enters an indoor area through a flood event or a sewage backup. Storm flood water is Category 3 water because of the sewers, ditches, and outdoor environments that are brought into indoor spaces by flooding. There are certain protocols required to be taken when remediating or removing damage from Category 3 water.
SEE ALSO: Impacted by storm damage? Here are some frequently asked questions and answers about filing a claim
Q: What’s the first step to take once your home is flooded?
A: First step is to know if you have flood insurance or not. If you live in a flood zone and have a mortgage, then you likely have flood insurance because it would be required by your mortgage company. If you don’t live in a flood zone, you may not have flood insurance. Flood insurance outside of “flood zone” maps is not required but everyone in Houston should try and purchase flood insurance if it is economically feasible. Flood insurance isn’t very expensive if you don’t live in a flood zone. It is peace of mind to have it. However, IF YOU DON’T HAVE FLOOD INSURANCE, then you will need help from FEMA, which is a government entity specific for emergencies just like floods. If you have a flood claim, either call in your flood claim immediately to your insurance company and/or FEMA. An adjuster should be assigned shortly who will inspect and estimate your damages. In the meantime, make sure you take photos of all damage to your home, property, personal contents, and anything you are claiming flood damage for. If you start removing any water damage from the building or contents, you will need to store them somewhere or save them in a pile so you can show the adjuster. FEMA and flood carriers from the National Flood Insurance Program require want to see the actual damage and if you throw it out and they can’t inspect it, they may not provide coverage or payment for it.
Q: How are flood insurance claims different from other claims?
A: Insurance claims are different from hurricane/hail/fire/windstorm claims because they are often insurance policies purchased through a government program or an insurance company writing policies for the government. They have less coverage in the policies and lower policy limits. There are also strict time lines that apply to flood claims for filing a flood claim and also filing lawsuit on a flood claim. Also, flood claims have a shorter Statute of limitations when it comes to when you must file a lawsuit by. Lastly but MOST IMPORTANTLY, a “Proof of Loss” is required for all flood claims and it is a specific form that must be filled out truthfully. A claim for Flood damages must be supported by a Proof of Loss containing the information required by your flood insurance policy. This must be fully completed and signed and in the hands of your insurance company within 60 days after the flood event/loss along with your supporting documentation for the amount in your Proof of Loss. If you miss this deadline, you will be barred from recovery. THE PROOF OF LOSS IS THE MOST IMPORTANT THING IN A FLOOD CLAIM IN ORDER TO PRESERVE YOUR RIGHT TO RECOVERY MONEY FOR YOUR DAMAGE. If you do not agree with the flood adjuster’s estimate or adjustment of your claim, then you need to see a reputable lawyer who understands Flood claims and the laws and regulations surrounding flood claims.
Q: What’s the biggest mistake you see homeowners make when it comes to flood damage and homes?
A: The biggest mistake is that most property owners do not know the timelines for filing a flood claim and can make an innocent mistake that prevents them from obtaining payment for the claim. Also, most people won’t purchase flood insurance as an option if their home is not in a flood zone. In Houston and surrounding areas, it is wise to purchase flood insurance because of the bayous that feed in and out of Houston and the lakes and coast.
Q: What should you look for when hiring someone to help with the storm damage?
A: If your home floods, make sure you hire a reputable company that knows how to handle Category 3 water and can do the proper remediation. Avoid companies that ask for too much money upfront, have hidden costs or open contract language that does not specify the actual cost to do the work. Do not sign any contract without fully reading and understanding the contract terms. Make sure the contractor provides you with proof of liability insurance as well and ask for client references for work that they have done. Do your research upfront on the company. Also, do not sign any document that requires the insurance company to sign over insurance proceeds to anyone or any company. You need to make sure your name is on the check as well to ensure you are happy with the work at the end of the day.
Q: Should folks get private flood insurance?
A: Flood Insurance under the NFIP program make up the majority of the flood insurance market, however, private flood insurance is better insurance. Private flood insurance can be purchased from insurance companies but it will cost more in premiums than going with a carrier working through the NFIP program. If you are able to spend more, you should get the better insurance policy through the private market. Most people do not release this because there aren’t many insurance companies offering it.
SEE ALSO: Mold cleanup after flooding: When to use bleach
Q: Why is gap insurance important?
A: Gap insurance can be helpful if you purchase a car and have a loan on the car that isn’t paid off. If you are within the first couple years of your loan on your car, GAP insurance may cover the gap between the loan payoff and what your insurance company pays you for the value of your car if it is a total loss in the flood. GAP is relatively cheap and can be purchased a party of your car payment. If you purchase GAP insurance and sell your car before the expiration of your auto loan, you can often get a refund for certain amounts spent on it depending on when you purchased it and how many years you have paid on the loan. Always, check with your dealership you purchased the GAP insurance from to see if you are owed money in this scenario.
In addition to handling hundreds of flood claims, Sigman is an attorney at Williams Hart Boundas LLP. She handled Hurricane Sandy flood claims from New York and Long Island in 2013, Hurricane Harvey flood claims, and the inverse condemnation/takings cases from Harvey and the Barker-Cypress levy release. In the US Court of Federal Claims, her firm is litigating hundreds of Hurricane Harvey Inverse Condemnation Flood cases.