Catastrophe situations typically involve numerous flood claims, making for brisk business for restoration companies. When a property owner states they have insurance, it would be wise to clarify if it is going to be a standard property claim, or insurance through the National Flood Insurance Program (NFIP). It is important to keep in mind that flood claims have to follow the rules of the Standard Flood Insurance Policy (SFIP) and there are some fairly significant differences from a standard homeowner’s policy.
Knowing the flood program rules can keep restorers from getting into hot water after a flood claim, especially if you are referred in by an agent. Nothing upsets a client or referring partner more than surprise charges the property owner must pay when, from the onset, everyone might have assumed it would be covered by the policy.
While restorers know exactly what is required to be done to restore the property to pre-loss condition, it is imperative that they know these standard procedures are not always covered by the SFIP -- which the flood adjuster must adhere to. There is no wiggle room when it comes to the SFIP, and it is important that the insured read their policy and coverages and make sure they understand the coverage and limitations, or contact their agent. When a restoration professional knows the rules, life becomes easier for all involved.