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NFIP FLOOD CLAIMOVERVIEW

© Allstate Insurance Company Proprietary and Confidential

This presentation is for general informational purposes onlyand is not intended to provide legal or regulatory advice. It is

not intended to be a substitute for any NFIP or FEMApublications.

Ivantage Select Agency is helping support Allstate Flood byco-hosting today’s Clear Communication session.

© Allstate Insurance Company Proprietary and Confidential

Important Notice

Presenters

Jeremy Mates Field Claim Service [email protected]

Robin Walls Field Quality [email protected]

Proprietary and Confidential

Definition ofFlood

A general and temporary

Condition of partial or

complete inundation of two

or more acres of normally dry

land area or of two or more

properties from the overflow

of land or tidal waters or from

the unusual and rapid

accumulation or runoff of

surface waters from any

source or Mudflow.


What to do after a Flood

If the insured has purchased a National Flood Insurance Policy throughan Allstate Agency… the first thing they need to do is file their floodclaim:

1. There are 3 easy ways to file a claim:

Customer can call 1-800-54-STORM

File a claim on www.allstate.com

Customer can contact their Allstate agent

• Allstate handles all NFIP flood claims via the National Flood Team,and a flood adjuster will contact your customer within 24 hours



2. Document damages to your property: Organize your property

in order to document your loss. Take pictures of all damage. We

want your photographs. No one knows your loss better than you.

3. Make a list of personal property damage: List the quantity,description, replacement cost, make, model and serial numbers, ifavailable, for all damaged items.

4. List areas of structural damage: Make a list of structuraldamage you want to point out to your adjuster. Keep notes of anyquestions to ask your adjuster.



5. Working with your adjuster: Your adjuster will contact you toschedule an inspection to document your damages.

6. “Scoping” your loss: Your adjuster will take measurements,photographs, and note any direct physical damages due to flood.

7. Preparing a detailed estimate: Your adjuster will prepare adetailed estimate of flood damages and submit this estimate forapproval.

8. Starting your repairs: Contractors should provide you with aroom by room detailed unit cost for each trade or repair (requiredby NFIP for additional payment consideration).



9. Review and Approval: All estimates are subject to review andapproval. Your adjuster is not authorized to approve your claim orprovide you with any initial figures.

10. Signing the Proof of Loss: The Flood Office will supply you witha Proof of Loss form that contains the approved figures. ThisProof of Loss must be signed and submitted within 60 days of thedate of loss. A non-waiver is required to be signed if a claim issubmitted for approval after 60 days from the date of loss. Oncethe signed Proof of Loss is submitted, your settlement checks willbe requested from U.S. Treasury Funds. The check/checks willbe sent to you via the US Mail.



11. Request for Additional Payment: Like your original claim, thisrequest must be filed within 60 days of the date of loss. If youdiscover additional damage after the 60-day limit has passed,contact the Allstate Flood Claims Department at 888-202-3716immediately. Claims filed after 60 days are decided on a case-by-case basis.

12. Quality Assurance: Allstate and the NFIP are committed toproviding exceptional customer service. You may receive a phonecall from an Allstate team member requesting to perform a phonesurvey. Additionally, an Allstate Quality Assurance adjuster or aNFIP General Adjuster may request a re-inspection of yourproperty. This re-inspection is to verify the accuracy of youradjuster’s report and ensure the quality of your claim.


Increased Cost of Compliance (ICC)

• The Standard Flood Insurance Policy has up to $30,000 availableafter a covered flood loss to help bring the flood damaged homeinto compliance with local base flood elevations on current FEMAmaps.

• Please note that this additional coverage may only be triggered bya substantially damaged letter from the community

• This coverage would allow for:

Floodproofing – (commercial properties only)

Relocating

Elevating

Demolishing


Elevated Building

National Flood Insurance ProgramDefinition of an

A building that has no basement and that has itslowest elevated floor raised above ground levelby foundation walls, shear walls, posts, piers,pilings, or columns. Page 2 section 14 of the SFIP Dwelling Form


Basement

National Flood Insurance ProgramDefinition of a

Any area of the building, including any sunkenroom or sunken portion of a room, having its floorbelow ground level (subgrade) on all sides.Page 1 section 5 of the SFIP Dwelling Form


(1) Central air conditioners;(2) Cisterns and the water in them;(3) Drywall for walls and ceilings in a BASEMENT and the cost of labor to nail it,unfinished and unfloated and not taped, to the framing; (**drywall is not coveredbelow the lowest elevated floor of a post-FIRM elevated building).(4) Electrical junction and circuit breaker boxes;(5) Electrical outlets and switches;(6) Elevators, dumbwaiters, and related equipment, except for relatedequipment installed below the base flood elevation afterSeptember 30, 1987;(7) Fuel tanks and the fuel in them;

Items of property in a building enclosure below the lowest elevatedfloor of an elevated post-FIRM building located in Zones A1-A30, AE,AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE or in abasement, regardless of the zone.

Coverage is limited to the following:

a. Any of the following items, if installed in their functioning locationsand, if necessary for operation, connected to a power source:


(8) Furnaces and hot water heaters;(9) Heat pumps;(10) Nonflammable insulation in a BASEMENT (**insulation is not coveredbelow the lowest elevated floor of a post-FIRM elevated building).(11) Pumps and tanks used in solar energysystems;(12) Stairways and staircases attached to the building, not separated from it byelevated walkways;(13) Sump pumps;(14) Water softeners and the chemicals in them, water filters, and faucetsinstalled as an integral part of the plumbing system;(15) Well water tanks and pumps;(16) Required utility connections for any item in this list; and(17) Footings, foundations, posts, pilings, piers, or other foundation walls andanchorage systems required to support a building.b. Clean-up.


Coverage for items of personal property in a building enclosure below thelowest elevated floor of an elevated post-FIRM building located in Zones A1-

A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30,V1-V30, or VE, or in abasement, regardless of the zone, is limited to the following items, if installed in

their functioning locations and, if necessary for operation, connected to a powersource:

a. Air conditioning units, portable or window type;

b. Clothes washers and dryers; and

c. Food freezers, other than walk-in, and food in

any freezer.

Contents CoverageIf Applicable


• There must be contents coverage in order to apply contentsmanipulation

• Contents will always be figured at Actual Cash Value

• NFIP does not consider sets or matching items; only the itemstouched/damaged by water will be replaced or repaired

• NFIP will only pay functional value, no appraisals or antiques

• There is a special limit of $2500 on business items, collectibles,memorabilia, jewelry, furs or artwork

• We will allow for contents in a detached shed IF that shed ispermanently affixed to the ground.

Make sure your client is aware to take photos, make lists and note allmakes, models and serial numbers prior to putting in yard for disposalwhere they may be taken prior to being seen or inspected by adjuster.


Exclusions

There are numerous exclusions to be aware of in a Flood Policy. Ruleof thumb is that the policy covers the footprint (or foundation) inwardsother than the AC condenser. So no…..

• Driveways, sidewalks

• Landscaping

• Septic or well systems underground or outside of foundation walls

• Pools or their equipment

• Sheds

• Fences

• Decks (other than a 4x4 landing to allow access to a door or stairs)

• ALE (no additional living, loss of income, loss of rent, etc)


Mitigation: What is covered

• Water extraction/muckout

• Air movers

• Dehumudifiers

• Cleaning

• Applying antimicrobial treatment to walls andfloors

• Removal of wet carpet and pad

• Removal of wet drywall and insulation

Note: Be aware that not all operations are allowable in basementsand below elevated buildings.


Advance payments

• The flood policy does not offer ALE.

• Advances are offered based on the initial inspection bythe adjuster, and must be warranted.

• Advances are made under personal property coveragewhen possible.

• Advances made under the dwelling coverage will list alllienholders.

• Advance payments are not made onsite. They are sentovernight from the US Treasury.

• Advance payments are requested through the FloodOffice.


Priors

• All Prior losses are researched.

• FEMA requires the Insureds have to provide proof thatprior damages are repaired or replaced beforepayments can be made for the same items.

• Prior losses add complexity to a claim and require timeand research to properly evaluate their effect on thecurrent loss.


Agent Responsibilities

You are our customers first line of defense, information and customerservice.

• Make sure all information is up to date and correctly spelled:Names, addresses, phone numbers and mortgage companies

• Dwelling and Contents are two separate coverages under floodand will require two separate deductibles.

• Remember that in order to qualify for RC they must meet 4requirements: Single family home, principal residence, have adwelling policy and be insured 80% to the value of the building

• Differentiate that they only need to reside there 50% to qualify forthe Primary UW discount, but 80% to qualify for Principal RCV.


FEMA appeal process

• The customer may write an appeal letter to FEMA.

• Remember, before the customer may appeal, Allstate must makea final determination and send a written denial for the claim or anypart of it.

• The customer then has 60 days from the date of the denial letter tosubmit their appeal to FEMA. The appeal must include the denialletter from Allstate and supporting documentation. For moreinformation on the appeal process, customers and agents shouldrefer to the Flood Insurance Claims Handbook located atFEMA.gov

• The Claims Handbook is provided to the customer when they file aclaim. It is also extremely helpful for agents.


How to find help with a NFIP flood claim

The NCT Flood Agent Advocates Group, a team dedicated toassisting agents and agency staff, is ready to assist you with federalNational Flood Insurance Program (NFIP) claim inquiries. The following isa list of NCT Flood/AA Team contact numbers that you and your agencystaff can use if you have any questions, need information, or requireassistance with any NFIP flood claim.

Please do not hesitate to contact us with any questions you might have.

· Customer Call Center 888-202-3716

· NCT Flood Agent Advocates 888-323-5872 (Prompt #4)

· NCT Flood E-fax 866-655-0883

· NCT Flood E-mail [email protected]

· Flood Underwriting (Policy Inquiry) 800-527-2634

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